A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
Members Trust Company scored 14 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Members Trust Company's most recent annualized quarterly return on equity was 6.57 percent, below the national average of 8.10 percent.
The bank reported net income of $2.2 million on total equity of $33.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 6.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.