A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, Main Street Bank scored 10 out of a possible 30, lower than the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Main Street Bank's most recent annualized quarterly return on equity was 6.95 percent, below the national average of 9.28 percent.
The bank earned net income of $2.7 million on total equity of $108.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.