A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
CresCom Bank underperformed the average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. CresCom Bank's most recent annualized quarterly return on equity was 9.34 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $29.4 million on total equity of $501.9 million. The bank reported an annualized return on average assets, or ROA, of 1.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.