How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Adams County Building and Loan Company received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Adams County Building and Loan Company's most recent annualized quarterly return on equity was 2.34 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $101,000 on total equity of $4.4 million. The bank reported an annualized return on average assets, or ROA, of 0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.