A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
All America Bank scored 22 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.06.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for All America Bank was 13.67 percent, above the national average of 8.10 percent.
The bank reported net income of $5.9 million on total equity of $43.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.