A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Bison State Bank scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Bison State Bank was -22.42 percent, below the national average of 8.10 percent.
The bank recorded net income of $-212,000 on total equity of $836,000 for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -2.69 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.