How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
The AMERICAN BANK OF SIDNEY, NEBRASKA scored 16 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The AMERICAN BANK OF SIDNEY, NEBRASKA was 7.67 percent, below the national average of 9.28 percent.
The bank recorded net income of $396,000 on total equity of $10.5 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.