A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
Alden State Bank scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 16.52.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Alden State Bank was 9.28 percent, identical to the national average.
For the twelve months ended June 30, 2017, the bank earned net income of $1.7 million on total equity of $37.6 million. The bank reported an annualized return on average assets, or ROA, of 1.11 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.