A bank's earnings performance has an effect on its safety and soundness. Earnings can 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 trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Austin County State Bank scored 24 out of a possible 30, above the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Austin County State Bank's most recent annualized quarterly return on equity was 14.60 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $1.0 million on total equity of $14.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.