A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Bank3 received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Bank3 was -13.00 percent, below the national average of 8.10 percent.
The bank recorded net income of $-3.1 million on total equity of $22.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -3.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.