A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Adams County Building and Loan Company fell behind the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for Adams County Building and Loan Company was 3.43 percent, below the national average of 9.28 percent.
The bank reported net income of $74,000 on total equity of $4.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.64 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.