How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
Northstar Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Northstar Bank's most recent annualized quarterly return on equity was 15.03 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $8.7 million on total equity of $59.6 million. The bank experienced an annualized return on average assets, or ROA, of 1.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.