A bank's profitability affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
Defiance State Bank scored 20 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Defiance State Bank's most recent annualized quarterly return on equity was 11.71 percent, above the national average of 8.10 percent.
The bank earned net income of $342,000 on total equity of $3.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.