A bank's profitability affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Banner Bank scored 16 out of a possible 30, less than the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Banner Bank's most recent annualized quarterly return on equity was 8.01 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $51.6 million on total equity of $1.30 billion. The bank reported an annualized return on average assets, or ROA, of 1.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.