How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Noah Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Noah Bank was 6.70 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $1.3 million on total equity of $40.6 million. The bank had an annualized return on average assets, or ROA, of 0.79 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.