A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Axiom Bank, National Association scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Axiom Bank, National Association's most recent annualized quarterly return on equity was 0.90 percent, below the national average of 8.10 percent.
The bank earned net income of $880,000 on total equity of $97.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.