How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
Brickell Bank scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Brickell Bank's most recent annualized quarterly return on equity was -5.27 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-1.5 million on total equity of $27.6 million. The bank had an annualized return on average assets, or ROA, of -0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.