A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Peoples State Bank of Munising scored 16 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Peoples State Bank of Munising's most recent annualized quarterly return on equity was 7.43 percent, below the national average of 8.10 percent.
The bank earned net income of $1.3 million on total equity of $17.2 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.00 percent.