How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Liberty Bank scored 8 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Liberty Bank was 3.58 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $289,000 on total equity of $8.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.