How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Celtic Bank did above-average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Celtic Bank's most recent annualized quarterly return on equity was 30.26 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $32.1 million on total equity of $122.1 million. The bank experienced an annualized return on average assets, or ROA, of 5.22 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.