A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. However, banks that are losing money are less able to do those things.
Kopernik Bank beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Kopernik Bank's most recent annualized quarterly return on equity was 16.06 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.6 million on total equity of $37.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 3.30 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.