How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Admirals Bank scored 0 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Admirals Bank's most recent annualized quarterly return on equity was -53.51 percent, below the national average of 8.10 percent.
The bank earned net income of $-19.7 million on total equity of $28.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -5.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.