A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. However, banks that are losing money are less able to do those things.
Drummond Community Bank scored 20 out of a possible 30 on Bankrate's test of earnings, above the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Drummond Community Bank was 12.08 percent, above the national average of 9.28 percent.
The bank reported net income of $3.4 million on total equity of $60.6 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.