How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, State Bank of Brooks scored 6 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. State Bank of Brooks's most recent annualized quarterly return on equity was 2.17 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $45,000 on total equity of $2.1 million. The bank had an annualized return on average assets, or ROA, of 0.27 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.