A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
Abbeville Building & Loan (A State-Chartered Savings Bank) received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. Abbeville Building & Loan (A State-Chartered Savings Bank)'s most recent annualized quarterly return on equity was 3.96 percent, below the national average of 9.28 percent.
The bank reported net income of $290,000 on total equity of $14.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.