How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Armstrong County Building and Loan Association scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach 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. Armstrong County Building and Loan Association's most recent annualized quarterly return on equity was 0.91 percent, below the national average of 9.28 percent.
The bank earned net income of $57,000 on total equity of $12.5 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.