A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
Auburn Banking Company outperformed the average on Bankrate's test of earnings, achieving a score of 28 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Auburn Banking Company's most recent annualized quarterly return on equity was 18.52 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $1.2 million on total equity of $6.6 million. The bank reported an annualized return on average assets, or ROA, of 1.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.