How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Albany Bank and Trust Company National Association scored 12 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Albany Bank and Trust Company National Association's most recent annualized quarterly return on equity was 5.93 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $5.3 million on total equity of $90.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.89 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.