How profitable a bank is affects 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 financial shocks. Conversely, losses reduce a bank's ability to do those things.
Marion County State Bank exceeded the national average on Bankrate's earnings test, achieving a score of 28 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Marion County State Bank's most recent annualized quarterly return on equity was 18.76 percent, above the national average of 8.10 percent.
The bank earned net income of $6.1 million on total equity of $32.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.