How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, Movement Bank scored 0 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Movement Bank's most recent annualized quarterly return on equity was -42.78 percent, below the national average of 8.10 percent.
The bank reported net income of $-2.2 million on total equity of $7.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -6.52 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.