Arkansas Tops District In 4Q Interest Margins

In the fourth quarter of 2005, Arkansas banks collectively had a net interest margin of 4.20 percent, down from 4.23 percent for the same quarter in 2004.

Arkansas ranked as the top performer in the U.S. Federal Reserve Bank’s 8th District, which includes all of Arkansas and parts of six other states, according to the Federal Reserve Bank of St. Louis.

Net interest margin is total interest income less total interest expense as a percent of average earning assets.

As of Dec. 30, Citizens’ Bank and Trust Co. of Van Buren had a net interest margin of 4.74 percent; Community First Bank of Harrison had a ratio of 4.08 percent; Parkdale-chartered Delta Trust & Bank had a ratio of 4.03 percent; and Bank of Gravett had a ratio of 3.39 percent.

The collective margin for the 8th District for the third quarter was 3.87 percent, 0.33 percent lower than Arkansas’.