In the third quarter of 2012, Arkansas banks collectively had a net interest margin of 4.19 percent, down from 4.31 percent for the same quarter in 2011.
Arkansas ranked as the top performer in the U.S. Federal Reserve Bank’s Eighth 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 Sept. 30, Fayetteville-chartered Arvest Bank had a net interest margin of 3.27 percent; First Security Bank of Searcy had a ratio of 4.46 percent; Pinnacle Bank of Bentonville had a ratio of 2.71 percent; Danville-chartered Chambers Bank had a ratio of 4.16 percent; and The First National Bank of Fort Smith had a ratio of 4.41 percent.
The collective margin for the Eighth District in the third quarter was 3.39 percent, 0.8 percent lower than the Arkansas ratio.