How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Peoples State Bank of Colfax outperformed the average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Peoples State Bank of Colfax's most recent annualized quarterly return on equity was 9.56 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $377,000 on total equity of $3.9 million. The bank had an annualized return on average assets, or ROA, of 1.08 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.