A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
America's Community Bank received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for America's Community Bank was 3.36 percent, below the national average of 9.28 percent.
The bank earned net income of $61,000 on total equity of $3.6 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.41 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.