A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Black Mountain Savings Bank, SSB scored 6 out of a possible 30, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Black Mountain Savings Bank, SSB's most recent annualized quarterly return on equity was 2.39 percent, below the national average of 8.10 percent.
The bank recorded net income of $117,000 on total equity of $5.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.