A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Bank of Cairo and Moberly scored 10 out of a possible 30, less than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Bank of Cairo and Moberly's most recent annualized quarterly return on equity was 4.77 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $880,000 on total equity of $18.5 million. The bank reported an annualized return on average assets, or ROA, of 0.87 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.