A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Bank of Rantoul received above-average marks on Bankrate's earnings test, achieving a score of 28 out of a possible 30.
One key 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 Rantoul's most recent annualized quarterly return on equity was 18.65 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $4.6 million on total equity of $25.3 million. The bank had an annualized return on average assets, or ROA, of 2.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.