How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Midstate Community Bank scored 6 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Midstate Community Bank was 2.31 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $277,000 on total equity of $24.2 million. The bank reported an annualized return on average assets, or ROA, of 0.33 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.