How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, The Baltic State Bank scored 20 out of a possible 30, better than the national average of 16.52.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The Baltic State Bank's most recent annualized quarterly return on equity was 11.71 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $333,000 on total equity of $5.8 million. The bank had an annualized return on average assets, or ROA, of 1.27 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.