How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Pigeon Falls State Bank beat the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Pigeon Falls State Bank was 7.23 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $587,000 on total equity of $8.0 million. The bank reported an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.