How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Bluegrass Community Bank scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Bluegrass Community Bank was -12.11 percent, below the national average of 8.10 percent.
The bank earned net income of $-732,000 on total equity of $5.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -1.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.