How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
The Bank scored 22 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The Bank's most recent annualized quarterly return on equity was 12.57 percent, above the national average of 8.10 percent.
The bank earned net income of $3.0 million on total equity of $24.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.