A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Kingstree Federal Savings and Loan Association scored 8 out of a possible 30, less than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Kingstree Federal Savings and Loan Association was 3.22 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $168,000 on total equity of $5.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.