Arkansas Banks Tops in District for 4Q ROA
by March 18, 2013 12:00 am 66 views
Arkansas banks earned a return on their average assets of 1.18 percent in the fourth quarter of 2012, ranking No. 1 among the seven states in the U.S. Federal Reserve Bank’s Eighth District.
The percentage represents an increase of 0.1 percent in the state’s collective ROA from the fourth quarter of 2011. Banks generally consider their annual ROA percentage a main indicator of their health and performance.
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.
Collectively, banks in the Eighth District had an ROA of 0.93 percent, virtually unchanged from the third quarter of 2012 (0.92 percent) and up slightly from the third quarter of 2011 (0.78 percent).
For the same quarter, Metropolitan National Bank of Little Rock had a -0.19 percent ROA; Springdale-based Legacy National Bank had a 0.43 percent ROA; and The First National Bank in Green Forest had a 1.61 percent ROA.
Arkansas banks are collectively at 10.24 percent for the fourth quarter of 2012 in return on average equity. That ranks second in the Eighth District, and represents an increase of 0.58 percent from a 2011 fourth quarter mark of 9.66 percent.
ROE, as defined by the FDIC, is “annualized net income as a percent of average equity on a consolidated basis.”
Arkansas is one of four banks in the Eighth District with an ROE of at least 10 percent. Collectively, banks in the district had an ROE of 8.48 percent, up from 7.29 percent in the fourth quarter of 2011.
Centennial Bank of Conway had a 13.44 percent ROE in the fourth quarter of 2012; Citizens Bank & Trust Co. of Van Buren had an 11.74 percent ROE; and First Security Bank of Searcy had an ROE of 20.01 percent.