A bank's profitability affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Anthem Bank & Trust scored 6 out of a possible 30, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. Anthem Bank & Trust's most recent annualized quarterly return on equity was 2.90 percent, below the national average of 8.10 percent.
The bank earned net income of $421,000 on total equity of $14.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.