Arkansas’ ROE Tops in District
by February 23, 2009 12:00 am 61 views
In the third quarter of 2008, Arkansas banks collectively had a return on their average equity of 9.58 percent, ranking No. 1 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 down 1.42 percentage points 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.”
For the same quarter, The Bank of Fayetteville had an ROE of 5.54 percent; Fort Smith-based thrift Benefit Bank had a 15.18 percent ROE; First National Bank in Green Forest had a 8.54 percent ROE; and First Western Bank of Booneville had a negative 6.16 percent ROE.
The collective return on average equity for the district was 5.22 percent, and the U.S. average was 4.36 percent.