A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
American Community Bank & Trust scored 12 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. American Community Bank & Trust's most recent annualized quarterly return on equity was 5.44 percent, below the national average of 8.10 percent.
The bank earned net income of $3.8 million on total equity of $70.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.