How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, The State Bank of Blue Rapids scored 8 out of a possible 30, coming in below the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for The State Bank of Blue Rapids was 3.25 percent, below the national average of 9.28 percent.
The bank earned net income of $82,000 on total equity of $5.1 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.36 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.