How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, Radius Bank scored 4 out of a possible 30, lower than the national average of 16.06.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. Radius Bank's most recent annualized quarterly return on equity was 2.01 percent, below the national average of 8.10 percent.
The bank earned net income of $2.0 million on total equity of $106.8 million for the twelve months ended December 31, 2017. The bank had 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.