A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing 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.
Algonquin State Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Algonquin State Bank was 0.06 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $9,000 on total equity of $14.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.01 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.