How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Robertson Banking Company scored 22 out of a possible 30, beating out the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Robertson Banking Company's most recent annualized quarterly return on equity was 13.52 percent, above the national average of 8.10 percent.
The bank earned net income of $4.1 million on total equity of $30.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.