How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Wolverine Bank, Federal Savings Bank scored 20 out of a possible 30, beating out the national average of 16.52.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Wolverine Bank, Federal Savings Bank's most recent annualized quarterly return on equity was 8.09 percent, below the national average of 9.28 percent.
The bank recorded net income of $2.5 million on total equity of $63.9 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.26 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.