The average return on assets, or ROA, of Arkansas banks surged to 1.26 percent in the first quarter of 2013, making the state the top performer among the seven states in the U.S. Federal Reserve Bank’s Eighth District.
The percentage represents an increase of 0.25 percent in the state’s collective ROA from the first quarter of 2012.
Banks generally consider their annual ROA percentage a top indicator of their health and profitability.
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.
Arkansas banks are also beating the national average... [ MORE ]