A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Asheville Savings Bank, S.S.B. scored 14 out of a possible 30, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Asheville Savings Bank, S.S.B. was 7.12 percent, below the national average of 9.28 percent.
The bank recorded net income of $3.1 million on total equity of $90.6 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.79 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.