How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
Centennial Bank scored 20 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 (profit, basically) 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 Centennial Bank was 13.79 percent, above the national average of 9.28 percent.
The bank recorded net income of $102.8 million on total equity of $1.73 billion for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.97 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.