A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Bank of Springfield did above-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Bank of Springfield's most recent annualized quarterly return on equity was 7.19 percent, below the national average of 8.10 percent.
The bank reported net income of $5.9 million on total equity of $84.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.