A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Bank of Abbeville & Trust Company received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Bank of Abbeville & Trust Company was 1.37 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $378,000 on total equity of $27.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.