A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
American Pride Bank scored 20 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. American Pride Bank's most recent annualized quarterly return on equity was 10.49 percent, above the national average of 8.10 percent.
The bank reported net income of $2.6 million on total equity of $25.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.65 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.