A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Vermillion State Bank scored 26 out of a possible 30, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Vermillion State Bank was 17.57 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $13.6 million on total equity of $79.6 million. The bank had an annualized return on average assets, or ROA, of 2.56 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.