A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Buckley State Bank scored 0 out of a possible 30, failing to reach the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Buckley State Bank's most recent annualized quarterly return on equity was -6.25 percent, below the national average of 8.10 percent.
The bank reported net income of $-307,000 on total equity of $4.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.