How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Durden Banking Company, Incorporated outperformed the average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. Durden Banking Company, Incorporated's most recent annualized quarterly return on equity was 12.30 percent, above the national average of 8.10 percent.
The bank earned net income of $3.0 million on total equity of $25.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.86 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.