A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Amboy Bank scored 22 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Amboy Bank's most recent annualized quarterly return on equity was 13.91 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $22.5 million on total equity of $328.8 million. The bank reported an annualized return on average assets, or ROA, of 1.84 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.