How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Commercial Bank of Oak Grove, Mo. received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Commercial Bank of Oak Grove, Mo.'s most recent annualized quarterly return on equity was 2.23 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $261,000 on total equity of $11.5 million. The bank had an annualized return on average assets, or ROA, of 0.37 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.