A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Adams Bank & Trust scored 18 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Adams Bank & Trust's most recent annualized quarterly return on equity was 9.96 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $3.9 million on total equity of $78.9 million. The bank reported an annualized return on average assets, or ROA, of 1.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.