A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. However, banks that are losing money have less ability to do those things.
American Trust Bank scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for American Trust Bank was 0.64 percent, below the national average of 9.28 percent.
The bank earned net income of $21,000 on total equity of $6.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.