A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Orange Bank &Trust Company scored 8 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Orange Bank &Trust Company's most recent annualized quarterly return on equity was 3.55 percent, below the national average of 8.10 percent.
The bank reported net income of $3.1 million on total equity of $86.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.32 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.