A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Inez Deposit Bank received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Inez Deposit Bank's most recent annualized quarterly return on equity was 1.91 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $343,000 on total equity of $17.9 million. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.