A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Bank of Crocker scored 6 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Bank of Crocker was 2.37 percent, below the national average of 8.10 percent.
The bank earned net income of $319,000 on total equity of $13.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.25 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.