How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Standing Stone Bank scored 10 out of a possible 30, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Standing Stone Bank's most recent annualized quarterly return on equity was 4.55 percent, below the national average of 8.10 percent.
The bank recorded net income of $339,000 on total equity of $7.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.33 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.