2Q Data Shows Arkansas Banks At Top of ROA, ROE Rankings

The average return on assets, or ROA, of Arkansas banks was 1.24 percent in the second quarter of 2013, making the state the top performer among the seven states in the U.S. Federal Reserve Bank’s Eighth District.

The percentage represents an increase of 0.17 percent in the state’s collective ROA from the second quarter of 2012.

Banks generally consider their annual ROA percentage a top indicator of health and profitability.

ROA, as defined by the Federal Deposit Insurance Corp., is “net income after taxes and extraordinary items [annualized] as a percent of average assets.”

Arkansas is the only state wholly in the Eighth District. The other six states are partially in the Eighth and partially in another.

Arkansas banks are also beating the national average of 1.14 percent and the Eighth District average of 1.01 percent

In the category of return on average equity, or ROE, Arkansas banks surged to 10.69 percent for the second quarter of 2013. That ranks first in the Eighth District, and represents an increase of 1.29 percent from the second quarter of 2012.

ROE, as defined by the FDIC, is “annualized net income as a percent of average equity on a consolidated basis.”

Arkansas is the only bank in the Eighth District beating the national ROE average of 10.14 percent.

Collectively, Eighth District Banks had an ROE of 9.28 percent, an increase from 8.22 percent in the second quarter of 2012.