A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Ameristate Bank received above-average marks on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Ameristate Bank was 22.29 percent, above the national average of 8.10 percent.
The bank earned net income of $5.0 million on total equity of $23.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.04 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.