A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Community Bank of Raymore scored 30 out of a possible 30, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Community Bank of Raymore was 40.70 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.5 million on total equity of $19.1 million. The bank reported an annualized return on average assets, or ROA, of 3.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.