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 more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Auto Club Trust, FSB scored 0 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Auto Club Trust, FSB's most recent annualized quarterly return on equity was -5.31 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-3.1 million on total equity of $56.3 million. The bank had an annualized return on average assets, or ROA, of -0.68 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.