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 buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Bank of Ruston scored 18 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Bank of Ruston's most recent annualized quarterly return on equity was 9.54 percent, above the national average of 8.10 percent.
The bank earned net income of $2.4 million on total equity of $25.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.