How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Alton Bank scored 26 out of a possible 30 on Bankrate's earnings test, beating out the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Alton Bank's most recent annualized quarterly return on equity was 17.70 percent, above the national average of 9.28 percent.
The bank recorded net income of $731,000 on total equity of $8.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 2.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.