A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Slovenian Savings and Loan Association of Canonsburg outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Slovenian Savings and Loan Association of Canonsburg's most recent annualized quarterly return on equity was 7.68 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $4.1 million on total equity of $55.7 million. The bank had an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.