A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, Dutton State Bank scored 18 out of a possible 30, better than the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Dutton State Bank's most recent annualized quarterly return on equity was 9.99 percent, above the national average of 9.28 percent.
The bank earned net income of $335,000 on total equity of $6.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.