How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Atascosa Bank scored 14 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Atascosa Bank's most recent annualized quarterly return on equity was 7.03 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $512,000 on total equity of $7.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.