How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, FortuneBank scored 4 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. FortuneBank's most recent annualized quarterly return on equity was 1.32 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $210,000 on total equity of $16.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.11 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.