Arkansas? ROE Second in District

• Click here to see a chart of return on equity.

In the third quarter of 2006, Arkansas banks collectively had a return on their average equity of 12.08 percent, ranking No. 2 of the seven states in the U.S. Federal Reserve Bank’s 8th District. The district includes all of Arkansas and parts of six other states.
Arkansas’ ROE was up 0.63 percent from the comparable quarter a year earlier.
Many banks measure their success by the amount of ROE they make annually.
The Federal Deposit Insurance Corp. defines ROE as “annualized net income as a percent of average equity on a consolidated basis.”
According to Bauer Financial of Coral Gables, Fla., the top five banks in the six-county Northwest Arkansas region for calendar 2006 were: Bentonville-chartered ANB Financial NA had an ROE of 18.27 percent; The Bank of Fayetteville (No. 2) with 16.95 percent ROE; Citizens’ Bank & Trust Co. of Van Buren (No. 3) with 16.30 percent; Community First Bank of Harrison (No.4) with 15.97 percent and The First National Bank in Green Forest (No. 5) with 15.70 percent.
The collective return on average equity for the district was 12.28 percent, and the U.S. average was 13.45 percent.