How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, AllNations Bank scored 0 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. AllNations Bank's most recent annualized quarterly return on equity was -4.69 percent, below the national average of 8.10 percent.
The bank earned net income of $-237,000 on total equity of $6.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.48 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.