A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Sterling Bank scored 20 out of a possible 30, better than the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Sterling Bank was 11.02 percent, above the national average of 9.28 percent.
The bank recorded net income of $7.5 million on total equity of $138.3 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.