A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
Fortifi Bank scored 10 out of a possible 30 on Bankrate's test of earnings, below 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. Fortifi Bank's most recent annualized quarterly return on equity was 4.21 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.6 million on total equity of $36.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.37 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.