A bank's profitability affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them 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.
On Bankrate's earnings test, The Brookville Building and Savings Association scored 8 out of a possible 30, coming in below the national average of 15.12.
One widely used 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 The Brookville Building and Savings Association was 3.74 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $292,000 on total equity of $8.0 million. The bank had an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.