A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Alma Bank received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Alma Bank was 1.82 percent, below the national average of 8.10 percent.
The bank reported net income of $2.1 million on total equity of $110.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.19 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.