A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Rolfe State Bank scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Rolfe State Bank's most recent annualized quarterly return on equity was 7.98 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $421,000 on total equity of $5.4 million. The bank had an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.