How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
The Pioneer Savings Bank received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The Pioneer Savings Bank's most recent annualized quarterly return on equity was 0.75 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $49,000 on total equity of $6.5 million. The bank reported an annualized return on average assets, or ROA, of 0.14 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.