A bank's profitability affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Concordia Bank of Concordia, Missouri scored 12 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Concordia Bank of Concordia, Missouri's most recent annualized quarterly return on equity was 5.83 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $377,000 on total equity of $6.7 million. The bank had an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.