A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Connections Bank received above-average marks on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Connections Bank's most recent annualized quarterly return on equity was 6.01 percent, below the national average of 8.10 percent.
The bank reported net income of $308,000 on total equity of $4.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.