A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
Sunset Bank & Savings scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Sunset Bank & Savings was -2.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-350,000 on total equity of $15.4 million. The bank experienced an annualized return on average assets, or ROA, of -0.27 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.