A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Genesee Regional Bank scored 20 out of a possible 30, beating out the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Genesee Regional Bank was 11.33 percent, above the national average of 9.28 percent.
The bank recorded net income of $2.9 million on total equity of $53.4 million for the twelve months ended June 30, 2017. The bank experienced 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.