A bank's ability to earn money has an effect on 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 better prepared to withstand financial trouble. However, banks that are losing money have less ability to do those things.
BCBank, Inc. scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for BCBank, Inc. was 3.85 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $459,000 on total equity of $12.0 million. The bank had an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.