How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
The Old Exchange National Bank of Okawville scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The Old Exchange National Bank of Okawville's most recent annualized quarterly return on equity was 11.13 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $759,000 on total equity of $6.9 million. The bank reported an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.