How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
First Missouri State Bank outperformed the average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. First Missouri State Bank's most recent annualized quarterly return on equity was 15.40 percent, above the national average of 8.10 percent.
The bank earned net income of $3.2 million on total equity of $20.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.91 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.