A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Anna State Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Anna State Bank's most recent annualized quarterly return on equity was 6.05 percent, below the national average of 9.28 percent.
The bank earned net income of $369,000 on total equity of $12.4 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.96 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.