How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
CoastalStates Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. CoastalStates Bank's most recent annualized quarterly return on equity was -26.31 percent, below the national average of 8.10 percent.
The bank recorded net income of $-11.2 million on total equity of $50.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -2.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.