A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, The Commercial Bank Of Ozark scored 12 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The Commercial Bank Of Ozark's most recent annualized quarterly return on equity was 5.03 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $356,000 on total equity of $7.1 million. The bank reported an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.