A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Signature Bank scored 16 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Signature Bank's most recent annualized quarterly return on equity was 7.94 percent, below the national average of 9.28 percent.
The bank earned net income of $147.9 million on total equity of $3.80 billion for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.