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Gary B.: One banking measure shows area banks performing well

By Gary Bridgman
News Director White River Now

I was recently browsing through the latest issue of Arkansas Business when I came upon a report on Arkansas banks and their return on equity.

I noticed that the report was on 93 banks that serve Arkansas and Arkansas-chartered financial institutions ranked by return on equity for 2018.

A return on equity (ROE) is a measure of the profitability of a business in relation to the equity, also known as net assets or assets minus liabilities. Another way of describing ROE is a measure of how well a company uses investments to generate earnings growth.

I noticed two area banks were in the “Top 15” banks in Arkansas by ROE. And two Batesville-based banks made the list, as well.

In the Top 15, the report said the Bank of Salem, a smaller bank when total assets are considered, had an ROE of 13.38 percent, and First Community Bank of Batesville, a larger bank considering assets, had an ROE of 12.75 percent.

Other area banks in the top 55 on ROE were First National Bank of Lawrence County, FNBC Bank of Ash Flat, First Security Bank at Searcy, Bank of Cave City, Integrity First Bank of Mountain Home, Merchants & Planters Bank in Newport, and another Batesville financial institution, Citizens Bank.

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