Return on Assets for Commercial Banks

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2 Return on Assets for Commercial Banks United States Arkansas Return on Assets for Commercial Banks United States Arkansas Data is for FDIC-insured commercial banks. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

3 Return on Average Assets Arkansas aggregate: 1.34% 0.95% 0.98% 1.57% Aggregate data for commercial banks For the period ending % 1.45% 1.32% United States Source: FDIC Statistics on Depository Institutions

4 Net Interest Margin for Commercial Banks United States Arkansas Net Return Interest on Assets Margin for for Commercial Banks United States Arkansas Data is for FDIC-insured commercial banks.

5 Net Interest Margin Arkansas aggregate: 4.02% 3.57% 3.77% 4.15% 4.24% 3.98% Aggregate data for commercial banks For the period ending % United States Source: FDIC Statistics on Depository Institutions

6 Tier 1 Leverage Capital for Commercial Banks United States Arkansas Leverage Capital for Commercial Banks United States Arkansas Data is for FDIC-insured commercial banks. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

7 Leverage Capital Arkansas aggregate: 11.29% 9.39% 10.00% 10.50% 12.35% 11.70% Aggregate data for commercial banks For the period ending % United States Source: FDIC Statistics on Depository Institutions

8 Noncurrent Loans to Total Loans for Commercial Banks United States Arkansas Noncurrent Loans to Total Loans United States Arkansas Noncurrent loans are loans and leases 90 days or more overdue and still accruing and loans and leases in nonaccrual status. Data is for FDIC-insured commercial banks. Source: Federal Deposit Insurance Corporation Quarterly Banking Profile.

9 Noncurrent Loans to Loans Arkansas aggregate: 0.74% 0.80% 0.65% 0.63% Aggregate data for commercial banks As of % 1.32% 1.15% United States Source: FDIC Statistics on Depository Institutions

10 ALLL to Noncurrent Loans United States Arkansas Net ALLL Charge-offs to Noncurrent to Loans United States Arkansas Data is for FDIC-insured commercial banks. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

11 ALLL to Noncurrent Loans Arkansas aggregate: % % % % % % Aggregate data for commercial banks As of % United States Source: FDIC Statistics on Depository Institutions

12 Balance of Other Real Estate Owned in commercial banks with main offices in Arkansas (in millions) Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 $160.8 $264.2 $458.4 $728.7 $762.5 $747.3 $560.0 $419.5 $304.3 $239.6 $188.9 OREO in Arkansas commercial banks $700 $800 In millions $600 $700 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $0 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Balances in are net of OREO protected by FDIC loss-sharing agreements. Data is for FDIC-insured commercial banks with main offices in Arkansas. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

13 State-chartered Banks Operating Under Enforcement Actions Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec State Banks Under Regulatory Order Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Includes banks for which new or revised orders are pending. Banks under self-imposed board resolutions also are included. Source: Arkansas State Bank Department.

14 Percentage of State-chartered Assets Under Enforcement Actions Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec Percentage of Assets Under Regulatory Order Based on total assets in state-chartered banks Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Includes banks for which new or revised orders are pending. Banks under self-imposed board resolutions also are included. Sources: Arkansas State Bank Department/Federal Deposit Insurance Corporation Statistics on Depository Institutions.

15 Number of Failures of FDIC-insured Financial Institutions Number of Financial Institution Failures ** Data ** for Data 2010 for 2012 is through is through April July April Data includes FDIC-insured financial institutions, including savings associations. Source: Federal Deposit Insurance Corporation.

16 Number of FDIC-insured Commercial Banks in U.S. 12/31/97 12/31/02 12/31/07 12/31/12 12/31/17 Change 9,125 7,870 7,262 6,061 4, % Number of Commercial Banks in U.S. 20-year change: % 10,000 8,000 6,000 4,000 2, /31/97 12/31/02 12/31/07 12/31/12 12/31/17 Data includes all FDIC-insured commercial banks. Source: FDIC Statistics on Depository Institutions.

17 Number of Commercial Bank Charters Based in Arkansas Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 Dec-17 State charters National charters Total Number of Commercial Bank Charters in Arkansas Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 Dec-17 State charters National charters Data is for FDIC-insured commercial banks based in Arkansas. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

18 Assets in Commercial Banks Based in Arkansas (in millions) Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 Dec-17 State charters $14,386 $19,933 $28,828 $36,572 $44,473 $50,235 $ 81,185 $ 90,237 National charters $10,742 $8,232 $9,974 $12,456 $10,959 $10,817 $ 6,867 $ 7,396 Total $25,128 $28,165 $38,802 $49,028 $55,432 $61,052 $ 88,052 $ 97,633 Assets in Arkansas Commercial Banks In millions $100,000 $80,000 $65,000 $75,000 $60,000 $90,000 $70,000 $55,000 $65,000 $80,000 $60,000 $50,000 $70,000 $55,000 $45,000 $50,000 $40,000 $60,000 $45,000 $35,000 $50,000 $40,000 $35,000 $30,000 $40,000 $30,000 $25,000 $30,000 $25,000 $20,000 $20,000 $15,000 $15,000 $10,000 $5,000 $0 Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 Dec-17 State charters National charters Data is for FDIC-insured commercial banks based in Arkansas. Assets of out-of-state banks are not included. Source: Federal Deposit Insurance Corporation Statistics on Depository Institutions.

19 2018 Hot Topics Liquidity Cyber-Security CECL Libor Consolidation Risk Management

20 Community Banking Conference The 6th Annual Community Banking in the 21 st Century Research and Policy Conference sponsored by Federal Reserve and CSBS Scheduled for October 3 & 4 at the Federal Reserve Bank of St. Louis Focus is on challenges and opportunities that community bankers face in the 21 st Century Participants include community bankers, bank supervisors, policymakers and academicians Arkansas state-chartered banks are asked to complete a survey so their perspective can be a part of the conference dialogue Website:

Return on Assets for Commercial Banks

Return on Assets for Commercial Banks Return on Assets for Commercial Banks 12-31-14 12-31-15 12-31-16 12-31-17 12-31-18 United States 1.00 1.04 1.03 0.96 1.35 Arkansas 1.26 1.23 1.32 1.34 1.56 Return on Assets for Commercial Banks 1.25 1.20

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