A bank's ability to earn money affects its long-term survivability. 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. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Falcon International Bank scored 18 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. Falcon International Bank's most recent annualized quarterly return on equity was 10.02 percent, above the national average of 9.28 percent.
The bank reported net income of $6.1 million on total equity of $125.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.