A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Investment Savings Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Investment Savings Bank's most recent annualized quarterly return on equity was 1.17 percent, below the national average of 8.10 percent.
The bank recorded net income of $243,000 on total equity of $20.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.