How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Choice Financial Group scored 30 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Choice Financial Group's most recent annualized quarterly return on equity was 21.53 percent, above the national average of 8.10 percent.
The bank earned net income of $28.3 million on total equity of $139.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.