How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Equity Bank scored 0 out of a possible 30 on Bankrate's earnings test, coming in 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. Equity Bank's most recent annualized quarterly return on equity was -5.05 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-314,000 on total equity of $6.0 million. The bank experienced an annualized return on average assets, or ROA, of -0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.