A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Freeland State Bank fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Freeland State Bank was -0.46 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-42,000 on total equity of $9.0 million. The bank had an annualized return on average assets, or ROA, of -0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.