A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Merchants and Planters Bank scored 6 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Merchants and Planters Bank's most recent annualized quarterly return on equity was 2.78 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $227,000 on total equity of $8.2 million. The bank had an annualized return on average assets, or ROA, of 0.25 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.