A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Stonegate Bank scored 16 out of a possible 30, lower than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Stonegate Bank's most recent annualized quarterly return on equity was 8.28 percent, below the national average of 9.28 percent.
The bank reported net income of $16.3 million on total equity of $417.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.