A bank's profitability affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
Armstrong County Building and Loan Association scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Armstrong County Building and Loan Association's most recent annualized quarterly return on equity was 1.14 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $142,000 on total equity of $12.5 million. The bank had an annualized return on average assets, or ROA, of 0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.