A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Andalusia Community Bank scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Andalusia Community Bank's most recent annualized quarterly return on equity was 9.02 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $545,000 on total equity of $6.3 million. The bank experienced an annualized return on average assets, or ROA, of 1.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.