How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Independence Trust Company fell short of the national average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Independence Trust Company's most recent annualized quarterly return on equity was 7.28 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $132,000 on total equity of $3.6 million. The bank experienced an annualized return on average assets, or ROA, of 6.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.