How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
Independent Bank outperformed the average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Independent Bank's most recent annualized quarterly return on equity was 9.05 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $24.0 million on total equity of $269.5 million. The bank reported an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.