How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Arlington State Bank outperformed the average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Arlington State Bank's most recent annualized quarterly return on equity was 7.15 percent, below the national average of 8.10 percent.
The bank reported net income of $386,000 on total equity of $5.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.