A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, 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.
Red Rock Bank scored 14 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Red Rock Bank was 7.02 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $217,000 on total equity of $3.2 million. The bank had an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.