How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, American Bank, National Association scored 18 out of a possible 30, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for American Bank, National Association was 9.08 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $238,000 on total equity of $5.5 million. The bank reported an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.