Arkansas Second in ROA, ROE Rankings
by June 22, 2012 4:10 pm 97 views
In the first quarter of 2012, Arkansas banks had a return on their average assets of 1.16 percent, ranking No. 2 among the seven banks in the U.S. Federal Reserve Bank’s Eighth District.
That figure represents an increase of 0.16 percent in the state’s collective ROA from the first quarter of 2011.
Banks generally consider their annual ROA percentage a quality indicator of their success and performance.
The Federal Deposit Insurance Corp. defines ROA as “net income after taxes and extraordinary items [annualized] as a percent of average total assets.”
Arkansas is the only state wholly in the Eighth District. The other six states are partially in the Eighth and partially in another.
Every state in the Eighth District showed an increase from the first quarter of 2011.
The collective return on average assets for the district as a whole was 1.09 percent. The U.S. average was 1.00 percent.
For the same quarter, Jonesboro-based Liberty Bank of Arkansas had a 0.76 percent ROA; Bank of Gravett had a 0.44 percent ROA; Parkway Bank of Rogers had a 0.61 ROA; and Signature Bank of Arkansas of Fayetteville had a 0.44 percent ROA.
In the category of return on average equity, Arkansas banks were collectively at 10.89 percent for the first quarter of 2012.
That figure also ranks No. 2 among states in the Eighth District. Arkansas’ ROE was up 0.73 percent from the first quarter of 2011.
The FDIC defines ROE as “annualized net income as a percent of average equity on a consolidated basis.”
The collective return on average equity for the Eighth District was 10.05 percent. The U.S. average was 8.97 percent.
For the same quarter, The Bank of Fayetteville had an ROE of 5.23 percent; Legacy National Bank of Springdale had a 1.79 percent ROE; Pinnacle Bank of Rogers showed a -5.04 percent ROE; and The First National Bank of Fort Smith had an ROE of 8.09 percent.