A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, expanding 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, Franklin Synergy Bank scored 20 out of a possible 30, better than the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Franklin Synergy Bank was 10.94 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $18.4 million on total equity of $347.6 million. The bank had an annualized return on average assets, or ROA, of 1.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.