How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Bank of Coushatta scored 22 out of a possible 30 on Bankrate's earnings test, above the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Bank of Coushatta was 13.76 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $1.5 million on total equity of $21.9 million. The bank reported an annualized return on average assets, or ROA, of 1.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.