How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, The Napoleon State Bank scored 20 out of a possible 30, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The Napoleon State Bank's most recent annualized quarterly return on equity was 11.01 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.7 million on total equity of $25.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.26 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.