A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
Sutton Bank exceeded the national average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Sutton Bank was 16.33 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.7 million on total equity of $48.7 million. The bank reported an annualized return on average assets, or ROA, of 1.62 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.