A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Pilot Bank scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Pilot Bank was -4.04 percent, below the national average of 8.10 percent.
The bank earned net income of $-1.2 million on total equity of $31.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.