How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Pinnacle Bank scored 26 out of a possible 30 on Bankrate's earnings test, above the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Pinnacle Bank's most recent annualized quarterly return on equity was 16.89 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $37.9 million on total equity of $454.3 million. The bank had an annualized return on average assets, or ROA, of 1.71 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.