A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
Bank of Cordell scored 30 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Bank of Cordell's most recent annualized quarterly return on equity was 21.84 percent, above the national average of 8.10 percent.
The bank reported net income of $835,000 on total equity of $3.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.95 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.