How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
Pioneer Bank scored 22 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Pioneer Bank was 12.95 percent, above the national average of 8.10 percent.
The bank reported net income of $2.0 million on total equity of $15.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.22 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.