How profitable a bank is has an effect on its long-term survivability. 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 financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, The Leaders Bank scored 0 out of a possible 30, lower than the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for The Leaders Bank was -4.03 percent, below the national average of 8.10 percent.
The bank reported net income of $-1.7 million on total equity of $39.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.