How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Choice Financial Group scored 30 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Choice Financial Group was 21.84 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $14.0 million on total equity of $132.6 million. The bank experienced an annualized return on average assets, or ROA, of 2.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.