How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, Morris Bank scored 28 out of a possible 30, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Morris Bank's most recent annualized quarterly return on equity was 20.69 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $13.8 million on total equity of $70.7 million. The bank reported an annualized return on average assets, or ROA, of 2.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.