How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Banner Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Banner Bank's most recent annualized quarterly return on equity was 4.99 percent, below the national average of 8.10 percent.
The bank recorded net income of $64.6 million on total equity of $1.30 billion for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.