A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, State Bank of Jeffers scored 8 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. State Bank of Jeffers's most recent annualized quarterly return on equity was 3.66 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $118,000 on total equity of $3.2 million. The bank had an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.