How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Goodfield State Bank scored 26 out of a possible 30, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for Goodfield State Bank was 17.22 percent, above the national average of 8.10 percent.
The bank earned net income of $2.3 million on total equity of $14.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.08 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.