How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Baybank scored 18 out of a possible 30, above the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Baybank's most recent annualized quarterly return on equity was 8.49 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $731,000 on total equity of $8.7 million. The bank reported an annualized return on average assets, or ROA, of 0.82 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.