A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Robert Lee State Bank scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Robert Lee State Bank was 0.48 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $27,000 on total equity of $5.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.06 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.