How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Bank of Iberia scored 4 out of a possible 30, falling short of the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Bank of Iberia's most recent annualized quarterly return on equity was 1.61 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $78,000 on total equity of $4.8 million. The bank had an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.