Good News
Arkansas banks are reporting greater profitability than the national median. While, certainly some markets are struggling, three of Arkansas’ five largest markets report a median ROA of in excess of 1%. The national average is 56 basis points, and including all banks in Arkansas, the median ROA is still an astounding 91 basis points. While asset quality is rampant in Arkansas and the rest of the country, Arkansas’ capital ratios have held their ground compared to prior quarters and for the most part equal or exceed the national numbers. It should not be overlooked that most markets are well reserved for loan contingencies, with a 1.58% median, in line with a national median of 1.56%. Of concern in this area are two MSAs, Fort Smith and Jonesboro with a median reserve of less than 1.10%.