A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
Pioneer Community Bank, Inc. scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. Pioneer Community Bank, Inc.'s most recent annualized quarterly return on equity was 2.19 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $352,000 on total equity of $16.0 million. The bank reported an annualized return on average assets, or ROA, of 0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.