How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Bonduel State Bank received below-average marks on Bankrate's test of earnings, achieving a score of 10 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. The most recent annualized quarterly return on equity for Bonduel State Bank was 4.81 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $605,000 on total equity of $12.6 million. The bank had an annualized return on average assets, or ROA, of 1.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.