A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
EvaBank scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. EvaBank's most recent annualized quarterly return on equity was 13.02 percent, above the national average of 8.10 percent.
The bank earned net income of $9.7 million on total equity of $81.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.54 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.