A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Conway Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Conway Bank's most recent annualized quarterly return on equity was -5.38 percent, below the national average of 8.10 percent.
The bank recorded net income of $-452,000 on total equity of $9.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.