A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
First Arkansas Bank and Trust scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. First Arkansas Bank and Trust's most recent annualized quarterly return on equity was 8.82 percent, above the national average of 8.10 percent.
The bank recorded net income of $12.0 million on total equity of $143.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.63 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.