How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
The American Bank did below-average on Bankrate's test of earnings, achieving a score of 2 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 total equity. The most recent annualized quarterly return on equity for The American Bank was 0.33 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $21,000 on total equity of $6.4 million. The bank reported an annualized return on average assets, or ROA, of 0.07 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.