How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, The Morris Plan Company of Terre Haute, Inc. scored 20 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The Morris Plan Company of Terre Haute, Inc. was 10.09 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.2 million on total equity of $22.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.86 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.