How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
Adrian State Bank scored 26 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Adrian State Bank's most recent annualized quarterly return on equity was 17.56 percent, above the national average of 9.28 percent.
The bank earned net income of $369,000 on total equity of $4.3 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.67 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.