A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
Strasburg State Bank scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Strasburg State Bank's most recent annualized quarterly return on equity was 9.02 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $497,000 on total equity of $5.5 million. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.