How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
The American Bank received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The American Bank's most recent annualized quarterly return on equity was 0.00 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $0 on total equity of $6.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.00 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.