A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money are less able to do those things.
Titonka Savings Bank scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Titonka Savings Bank's most recent annualized quarterly return on equity was 3.77 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $697,000 on total equity of $18.5 million. The bank reported an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.