How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Alliance Bank scored 18 out of a possible 30, better than the national average of 15.12.
One widely used 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 Alliance Bank was 9.41 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.2 million on total equity of $66.1 million. The bank had an annualized return on average assets, or ROA, of 1.05 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.