How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
KeySavings Bank fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for KeySavings Bank was 0.02 percent, below the national average of 8.10 percent.
The bank recorded net income of $2,000 on total equity of $10.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.00 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.