A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
American Metro Bank scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. American Metro Bank's most recent annualized quarterly return on equity was 2.73 percent, below the national average of 9.28 percent.
The bank earned net income of $103,000 on total equity of $7.6 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.32 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.