A bank's profitability 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. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Marshall County State Bank scored 12 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Marshall County State Bank's most recent annualized quarterly return on equity was 5.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $344,000 on total equity of $6.0 million. The bank experienced an annualized return on average assets, or ROA, of 1.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.