How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
Beardstown Savings s.b. fell short of the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Beardstown Savings s.b.'s most recent annualized quarterly return on equity was 3.51 percent, below the national average of 8.10 percent.
The bank recorded net income of $192,000 on total equity of $5.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.