A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Atascosa National Bank scored 16 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. Atascosa National Bank's most recent annualized quarterly return on equity was 7.13 percent, below the national average of 9.28 percent.
The bank recorded net income of $257,000 on total equity of $7.3 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.