A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Manufacturers Bank & Trust Company beat the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Manufacturers Bank & Trust Company's most recent annualized quarterly return on equity was 11.92 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.8 million on total equity of $41.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.