How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Pioneer Bank scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Pioneer Bank's most recent annualized quarterly return on equity was 10.92 percent, above the national average of 8.10 percent.
The bank recorded net income of $7.6 million on total equity of $69.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.