How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Solvay Bank received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Solvay Bank was 8.96 percent, above the national average of 8.10 percent.
The bank recorded net income of $6.8 million on total equity of $77.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.