How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, American State Bank of Grygla scored 20 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for American State Bank of Grygla was 11.26 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $636,000 on total equity of $5.8 million. The bank experienced an annualized return on average assets, or ROA, of 1.21 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.