How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, The Bank of Castile scored 22 out of a possible 30, beating out the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Bank of Castile's most recent annualized quarterly return on equity was 14.20 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $15.2 million on total equity of $110.2 million. The bank experienced an annualized return on average assets, or ROA, of 1.08 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.