A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Bank 7 scored 30 out of a possible 30, better than the national average of 16.06.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Bank 7's most recent annualized quarterly return on equity was 35.70 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $24.0 million on total equity of $73.7 million. The bank reported an annualized return on average assets, or ROA, of 3.65 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.