A bank's profitability 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 trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, The Central National Bank of Poteau scored 28 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for The Central National Bank of Poteau was 19.07 percent, above the national average of 8.10 percent.
The bank reported net income of $4.6 million on total equity of $24.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.96 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.