How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, BNC National Bank scored 14 out of a possible 30, coming in below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. BNC National Bank's most recent annualized quarterly return on equity was 6.37 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.0 million on total equity of $93.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.