How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
ACB Bank outperformed the average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. ACB Bank's most recent annualized quarterly return on equity was 24.30 percent, above the national average of 9.28 percent.
The bank recorded net income of $1.2 million on total equity of $10.5 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 2.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.