How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
Bank of Benoit scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Bank of Benoit was 3.51 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $34,000 on total equity of $2.0 million. The bank reported an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.