How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Metro City Bank scored 30 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. Metro City Bank's most recent annualized quarterly return on equity was 27.08 percent, above the national average of 8.10 percent.
The bank recorded net income of $31.9 million on total equity of $131.6 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.72 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.