A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Iberiabank scored 16 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) 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 Iberiabank was 7.78 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $102.5 million on total equity of $2.69 billion. The bank had an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.