A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
Profile Bank scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Profile Bank's most recent annualized quarterly return on equity was 1.69 percent, below the national average of 8.10 percent.
The bank reported net income of $399,000 on total equity of $24.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.19 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.