A bank's earnings performance 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 address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Capital Bank, National Association scored 20 out of a possible 30, beating out the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Capital Bank, National Association's most recent annualized quarterly return on equity was 11.90 percent, above the national average of 9.28 percent.
The bank recorded net income of $4.9 million on total equity of $85.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.07 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.