A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
Barrington Bank & Trust Company, National Association scored 22 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Barrington Bank & Trust Company, National Association was 13.23 percent, above the national average of 9.28 percent.
The bank earned net income of $14.6 million on total equity of $228.2 million for the twelve months ended June 30, 2017. The bank experienced 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 1.14 percent.