Arkansas banks lead ROA rankings in 4Q 2016

by Talk Business & Politics staff ( 119 views 

In the fourth quarter of 2016, the average return on assets (ROA) for Arkansas banks was 1.33%, ranking the state’s lenders as the top performers among the seven states that make up the U.S. Federal Reserve Bank’s Eighth District.

The percentage represents an increase of 0.08% in the state’s collective ROA from the fourth quarter of 2015.

ROA, as defined by the Federal Deposit Insurance Corp., is “net income after taxes and extraordinary items [annualized] as a percent of average assets.” Banks generally consider their annual ROA percentage a top indicator of their health and profitability.

Arkansas banks are ahead of the Eighth District average of 1.12% and the national average of 1.02%.

For the same quarter, Legacy National Bank of Springdale had an ROA of 0.80%, Grand Savings Bank of Grove, Okla., had an ROA of 1.95% and Paragould-based First National Bank had an ROA of 1.16%.

In the category of return on average equity, or ROE, Arkansas banks rank second at 10.49% in the fourth quarter of 2016. That represents an increase of 0.25% from the fourth quarter of 2015.

Missouri is the top-performing bank state in the Eighth District in this category with an ROE Of 10.49%.

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

The Eighth District ROE average in the fourth quarter of 2016 was 9.85%.

Among Arkansas banks, Today’s Bank of Huntsville had an ROE of 11.66%, The First National Bank of Fort Smith had an ROE of 10.53% and Simmons Bank of Pine Bluff had an ROE of 9.59%.