How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Auburn Savings Bank, FSB scored 12 out of a possible 30, falling short of the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. Auburn Savings Bank, FSB's most recent annualized quarterly return on equity was 5.90 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $190,000 on total equity of $6.5 million. The bank reported an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.