How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, Eagle Community Bank scored 0 out of a possible 30, coming in below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Eagle Community Bank was -10.30 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-162,000 on total equity of $2.1 million. The bank had 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.