A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
Solon State Bank did above-average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Solon State Bank's most recent annualized quarterly return on equity was 8.43 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $1.9 million on total equity of $22.8 million. The bank experienced an annualized return on average assets, or ROA, of 2.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.