A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Bank of Eastman scored 18 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Bank of Eastman was 9.30 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $713,000 on total equity of $15.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.82 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.