How profitable a bank is has an effect on its safety and soundness. Earnings may 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. Obviously, banks that are losing money have less ability to do those things.
Enterprise Bank & Trust beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Enterprise Bank & Trust's most recent annualized quarterly return on equity was 8.83 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $51.3 million on total equity of $623.5 million. The bank experienced an annualized return on average assets, or ROA, of 1.04 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.