How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Quarry City Savings and Loan Association fell short of the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Quarry City Savings and Loan Association's most recent annualized quarterly return on equity was 2.99 percent, below the national average of 8.10 percent.
The bank earned net income of $253,000 on total equity of $8.6 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.48 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.