How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
Randall State Bank exceeded the national average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Randall State Bank's most recent annualized quarterly return on equity was 16.86 percent, above the national average of 8.10 percent.
The bank recorded net income of $820,000 on total equity of $5.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.