A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
The Alden State Bank scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for The Alden State Bank was 1.04 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $12,000 on total equity of $2.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.