How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Summit Community Bank, Inc scored 8 out of a possible 30, less than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Summit Community Bank, Inc was 4.19 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $3.8 million on total equity of $206.1 million. The bank had 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.