A bank's earnings performance 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, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, American Momentum Bank scored 8 out of a possible 30, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. American Momentum Bank's most recent annualized quarterly return on equity was 3.23 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $6.8 million on total equity of $211.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.