How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
The State Bank of Spring Hill scored 10 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for The State Bank of Spring Hill was 4.90 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $200,000 on total equity of $4.1 million. The bank reported an annualized return on average assets, or ROA, of 0.48 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.