Nonperforming Loans In Arkansas Drop in 3Q

In the third quarter of 2013, Arkansas banks collectively had a nonperforming loan ratio of 2.31 percent, down from 3.06 percent for the same period in 2012.

The ratio represents a percentage of a bank’s assets that are noncurrent, which means they’re past due more than 90 days or no longer accruing interest.

Therefore, on average, banks in Arkansas had 2.31 percent of loans in problem categories, which ranks sixth among the seven states in the U.S. Federal Reserve Bank’s Eighth District.

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

The collective nonperforming loan ratio for the Eighth District was 1.95 percent in the third quarter of 2013. That’s up slightly from 1.91 percent in the third quarter of 2012.

The U.S. average in the third quarter of 2013 was 2.89 percent, a sharp drop from 3.99 percent for the same period in 2012.