A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, The Morris State Bank scored 30 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. The Morris State Bank's most recent annualized quarterly return on equity was 22.21 percent, above the national average of 8.10 percent.
The bank reported net income of $1.4 million on total equity of $6.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.85 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.