A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, Relyance Bank, National Association scored 14 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important measure of a bank's earnings. Relyance Bank, National Association's most recent annualized quarterly return on equity was 6.95 percent, below the national average of 8.10 percent.
The bank reported net income of $6.0 million on total equity of $90.6 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.82 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.