A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Charlevoix State Bank scored 28 out of a possible 30, beating the national average of 15.12.
One important 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 Charlevoix State Bank was 19.79 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.2 million on total equity of $16.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.68 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.