How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
The State Savings Bank of Manistique received below-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for The State Savings Bank of Manistique was 5.17 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $732,000 on total equity of $13.9 million. The bank had an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.