How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, United Mississippi Bank scored 20 out of a possible 30, better than the national average of 16.52.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. United Mississippi Bank's most recent annualized quarterly return on equity was 10.93 percent, above the national average of 9.28 percent.
The bank recorded net income of $2.0 million on total equity of $36.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.11 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.