A bank's ability to earn money affects its long-term survivability. 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 financial shocks. Banks that are losing money, however, have less ability to do those things.
Cross Keys Bank scored 16 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Cross Keys Bank was 8.18 percent, below the national average of 9.28 percent.
The bank recorded net income of $1.7 million on total equity of $42.6 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.