How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Intercontinental Bank scored 8 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Intercontinental Bank's most recent annualized quarterly return on equity was 3.19 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $633,000 on total equity of $20.1 million. The bank reported an annualized return on average assets, or ROA, of 0.42 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.