A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
The Yellowstone Bank scored 24 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. The Yellowstone Bank's most recent annualized quarterly return on equity was 16.55 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $20.0 million on total equity of $125.3 million. The bank experienced an annualized return on average assets, or ROA, of 2.82 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.