A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
Regional Missouri Bank scored 26 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Regional Missouri Bank's most recent annualized quarterly return on equity was 17.95 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.9 million on total equity of $22.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.81 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.