A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, R Bank scored 12 out of a possible 30, coming in below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for R Bank was 6.07 percent, below the national average of 8.10 percent.
The bank recorded net income of $2.5 million on total equity of $41.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.