A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
The Conway National Bank scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for The Conway National Bank was 8.15 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $8.6 million on total equity of $105.2 million. The bank reported an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.