How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Enterprise Bank and Trust Company scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Enterprise Bank and Trust Company was 8.33 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $19.9 million on total equity of $246.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.75 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.