A bank's profitability has an effect on its safety and soundness. Earnings may 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 trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Grant County Bank underperformed the average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Grant County Bank's most recent annualized quarterly return on equity was 3.52 percent, below the national average of 8.10 percent.
The bank earned net income of $312,000 on total equity of $8.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.