A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
First Hope Bank, A National Banking Association received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for First Hope Bank, A National Banking Association was 3.43 percent, below the national average of 8.10 percent.
The bank earned net income of $1.5 million on total equity of $42.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.29 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.