A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, 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.
The Adirondack Trust Company scored 14 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for The Adirondack Trust Company was 6.75 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.6 million on total equity of $113.5 million. The bank reported an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.