How profitable a bank is has an effect on 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 financial trouble. Banks that are losing money, however, have less ability to do those things.
Burke & Herbert Bank & Trust Company scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Burke & Herbert Bank & Trust Company's most recent annualized quarterly return on equity was 8.20 percent, above the national average of 8.10 percent.
The bank earned net income of $27.8 million on total equity of $343.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.