A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Huntingdon Savings Bank scored 8 out of a possible 30, less than the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Huntingdon Savings Bank's most recent annualized quarterly return on equity was 3.37 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $110,000 on total equity of $3.3 million. The bank reported an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.