How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, Bank of Stronghurst scored 8 out of a possible 30, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Bank of Stronghurst's most recent annualized quarterly return on equity was 3.61 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $419,000 on total equity of $11.7 million. The bank had an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.