A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Ashton State Bank did above-average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Ashton State Bank's most recent annualized quarterly return on equity was 10.93 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $327,000 on total equity of $6.1 million. The bank had an annualized return on average assets, or ROA, of 1.32 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.