A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
OSB Community Bank scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. OSB Community Bank's most recent annualized quarterly return on equity was -5.58 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-425,000 on total equity of $9.4 million. The bank reported an annualized return on average assets, or ROA, of -0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.