A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Pioneer Savings Bank underperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Pioneer Savings Bank's most recent annualized quarterly return on equity was 6.84 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.0 million on total equity of $108.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.