How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
American City Bank scored 22 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. American City Bank's most recent annualized quarterly return on equity was 13.17 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $3.8 million on total equity of $60.4 million. The bank had an annualized return on average assets, or ROA, of 2.48 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.