A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Eagle Bank and Trust Company scored 10 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Eagle Bank and Trust Company's most recent annualized quarterly return on equity was 4.73 percent, below the national average of 8.10 percent.
The bank reported net income of $2.2 million on total equity of $47.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.