A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Angelina Savings Bank, SSB scored 12 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Angelina Savings Bank, SSB's most recent annualized quarterly return on equity was 5.35 percent, below the national average of 9.28 percent.
The bank earned net income of $150,000 on total equity of $5.7 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.