How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Bank of New Mexico scored 18 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. Bank of New Mexico's most recent annualized quarterly return on equity was 8.88 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.4 million on total equity of $15.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.89 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.