How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
All America Bank scored 22 out of a possible 30 on Bankrate's earnings test, beating the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. All America Bank's most recent annualized quarterly return on equity was 12.70 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $2.7 million on total equity of $43.0 million. The bank had an annualized return on average assets, or ROA, of 1.38 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.