How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, The Eastman National Bank of Newkirk scored 24 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for The Eastman National Bank of Newkirk was 14.94 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $1.9 million on total equity of $26.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.49 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.