How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, Republic Bank & Trust Company scored 20 out of a possible 30, beating out the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Republic Bank & Trust Company's most recent annualized quarterly return on equity was 10.83 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $30.0 million on total equity of $563.9 million. The bank had an annualized return on average assets, or ROA, of 1.25 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.