A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. However, banks that are losing money are less able to do those things.
Logan Bank & Trust Company fell short of the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Logan Bank & Trust Company's most recent annualized quarterly return on equity was 3.42 percent, below the national average of 8.10 percent.
The bank earned net income of $792,000 on total equity of $21.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.30 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.