A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Islanders Bank outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Islanders Bank's most recent annualized quarterly return on equity was 10.59 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $3.3 million on total equity of $29.6 million. The bank reported an annualized return on average assets, or ROA, of 1.21 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.