How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, A J Smith Federal Savings Bank scored 2 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. A J Smith Federal Savings Bank's most recent annualized quarterly return on equity was 0.04 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $13,000 on total equity of $29.3 million. The bank reported an annualized return on average assets, or ROA, of 0.01 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.