A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
Bank of Bearden scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Bank of Bearden's most recent annualized quarterly return on equity was 10.38 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $315,000 on total equity of $6.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.33 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.