How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
Independence State Bank received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Independence State Bank's most recent annualized quarterly return on equity was 9.19 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $545,000 on total equity of $5.9 million. The bank reported an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.