A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Bloomsdale Bank scored 30 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Bloomsdale Bank's most recent annualized quarterly return on equity was 21.74 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $4.8 million on total equity of $22.6 million. The bank had an annualized return on average assets, or ROA, of 2.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.