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 tough times. Banks that are losing money, however, are less able to do those things.
Manhattan Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Manhattan Bank's most recent annualized quarterly return on equity was 12.07 percent, above the national average of 8.10 percent.
The bank reported net income of $1.7 million on total equity of $14.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.