A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Ion Bank scored 6 out of a possible 30, failing to reach the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Ion Bank's most recent annualized quarterly return on equity was 3.07 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $3.3 million on total equity of $115.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.26 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.