A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Bank of Evergreen scored 18 out of a possible 30, exceeding 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 (essentially profit) by the total amount of equity. Bank of Evergreen's most recent annualized quarterly return on equity was 8.26 percent, above the national average of 8.10 percent.
The bank earned net income of $594,000 on total equity of $7.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.95 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.