A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
American Bank of Commerce received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. American Bank of Commerce's most recent annualized quarterly return on equity was 8.58 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $998,000 on total equity of $12.2 million. The bank had an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.