How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
The Farmers State Bank of Turton scored 20 out of a possible 30 on Bankrate's test of earnings, above 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, basically) by the total amount of equity. The most recent annualized quarterly return on equity for The Farmers State Bank of Turton was 11.74 percent, above the national average of 8.10 percent.
The bank earned net income of $401,000 on total equity of $3.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.37 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.