A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Grand Savings Bank scored 24 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Grand Savings Bank was 16.37 percent, above the national average of 8.10 percent.
The bank recorded net income of $6.0 million on total equity of $38.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.49 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.