A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
Progressive Ozark Bank scored 26 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. Progressive Ozark Bank's most recent annualized quarterly return on equity was 18.24 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.3 million on total equity of $13.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.