A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Riverland Bank scored 14 out of a possible 30 on Bankrate's test of earnings, below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Riverland Bank's most recent annualized quarterly return on equity was 6.33 percent, below the national average of 9.28 percent.
The bank earned net income of $468,000 on total equity of $15.0 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.