How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Bank of the Cascades scored 4 out of a possible 30, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Bank of the Cascades's most recent annualized quarterly return on equity was 1.47 percent, below the national average of 9.28 percent.
The bank recorded net income of $3.0 million on total equity of $518.0 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.19 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.