A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, State Bank of Nauvoo scored 20 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one key measure of a bank's earnings. State Bank of Nauvoo's most recent annualized quarterly return on equity was 11.43 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $309,000 on total equity of $2.8 million. The bank reported an annualized return on average assets, or ROA, of 1.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.