A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
The Adirondack Trust Company did below-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The Adirondack Trust Company's most recent annualized quarterly return on equity was 7.41 percent, below the national average of 9.28 percent.
The bank recorded net income of $4.2 million on total equity of $113.3 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.