A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
The Bank, National Association received above-average marks on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The Bank, National Association's most recent annualized quarterly return on equity was 17.54 percent, above the national average of 8.10 percent.
The bank earned net income of $6.5 million on total equity of $37.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.77 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.