A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, The American National Bank of Beaver Dam scored 8 out of a possible 30, less than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The American National Bank of Beaver Dam's most recent annualized quarterly return on equity was 3.49 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $414,000 on total equity of $12.0 million. The bank reported an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.