A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Pioneer Bank, SSB scored 12 out of a possible 30, below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Pioneer Bank, SSB's most recent annualized quarterly return on equity was 5.33 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $3.7 million on total equity of $140.1 million. The bank experienced an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.