How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Maryland Financial Bank scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Maryland Financial Bank's most recent annualized quarterly return on equity was -12.45 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-584,000 on total equity of $4.3 million. The bank experienced an annualized return on average assets, or ROA, of -0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.