A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
Carolina Premier Bank scored 12 out of a possible 30 on Bankrate's test of earnings, below the national average of 16.52.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Carolina Premier Bank was 5.48 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $663,000 on total equity of $24.7 million. The bank reported an annualized return on average assets, or ROA, of 0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.