A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, American Heritage Bank scored 20 out of a possible 30, above the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. American Heritage Bank's most recent annualized quarterly return on equity was 10.78 percent, above the national average of 9.28 percent.
The bank earned net income of $511,000 on total equity of $9.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.14 percent.