How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
State Bank of Saunemin scored 20 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. State Bank of Saunemin's most recent annualized quarterly return on equity was 11.57 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $420,000 on total equity of $3.7 million. The bank had an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.