A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, expanding 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.
Chambers Bank received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Chambers Bank's most recent annualized quarterly return on equity was 11.01 percent, above the national average of 8.10 percent.
The bank reported net income of $10.1 million on total equity of $94.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.