A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Alliance Bank & Trust Company scored 16 out of a possible 30, better than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Alliance Bank & Trust Company's most recent annualized quarterly return on equity was 8.24 percent, above the national average of 8.10 percent.
The bank earned net income of $865,000 on total equity of $11.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.61 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.