A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
Boonville Federal Savings Bank scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Boonville Federal Savings Bank's most recent annualized quarterly return on equity was 2.19 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $101,000 on total equity of $4.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.