How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
Liberty Bank scored 14 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Liberty Bank's most recent annualized quarterly return on equity was 6.33 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $476,000 on total equity of $15.6 million. The bank had an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.