A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, TotalBank scored 10 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. TotalBank's most recent annualized quarterly return on equity was 4.97 percent, below the national average of 9.28 percent.
The bank earned net income of $12.0 million on total equity of $490.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.