A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, American Exchange Bank, Lindsay, Oklahoma scored 20 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for American Exchange Bank, Lindsay, Oklahoma was 11.02 percent, above the national average of 9.28 percent.
The bank recorded net income of $372,000 on total equity of $7.0 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.25 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.