How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
The Apple Creek Banking Company exceeded the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The Apple Creek Banking Company's most recent annualized quarterly return on equity was 9.13 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $936,000 on total equity of $10.4 million. The bank reported an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.