How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, American Savings Bank scored 4 out of a possible 30, falling short of the national average of 16.52.
One key measure of 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 American Savings Bank was 1.10 percent, below the national average of 9.28 percent.
The bank reported net income of $43,000 on total equity of $7.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.20 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.