A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Amistad Bank fell short of the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Amistad Bank was 6.76 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $271,000 on total equity of $4.1 million. The bank had an annualized return on average assets, or ROA, of 0.95 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.