How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, NEW FRONTIER BANK scored 4 out of a possible 30, lower than the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for NEW FRONTIER BANK was 1.55 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $121,000 on total equity of $8.4 million. The bank reported an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.