Arkansas? ROE Third in District
by January 24, 2011 12:00 am 79 views
In the third quarter of 2010, Arkansas banks collectively had a return on their average equity of 8 percent, ranking as No. 3 of the seven states in the U.S. Federal Reserve Bank’s Eighth District. The district includes all of Arkansas and parts of six other states.
Arkansas’ ROE was up 2.02 points from the comparable quarter a year earlier.
Many banks measure success and performance by their annual ROE percentage.
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 -1.5 percent ROE; Bank of Gravett had a 7.05 percent ROE; Citizens’ Bank & Trust Co. of Van Buren had a 13.9 percent ROE; and Farmers Bank of Greenwood had a 3.38 percent ROE.
The collective return on average assets for the district was 5.43 percent, and the U.S. average was 4.75 percent.