How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Abbeville First Bank, SSB fell short of the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Abbeville First Bank, SSB was 5.94 percent, below the national average of 9.28 percent.
The bank reported net income of $249,000 on total equity of $8.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.