How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Embassy Bank for the Lehigh Valley beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Embassy Bank for the Lehigh Valley's most recent annualized quarterly return on equity was 9.82 percent, above the national average of 8.10 percent.
The bank earned net income of $7.6 million on total equity of $79.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.