How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
RCB Bank scored 22 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. RCB Bank's most recent annualized quarterly return on equity was 13.45 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $17.5 million on total equity of $272.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.25 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.