A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Anchor State Bank fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Anchor State Bank's most recent annualized quarterly return on equity was 3.98 percent, below the national average of 9.28 percent.
The bank reported net income of $34,000 on total equity of $1.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.