A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Traditional Bank, Inc. scored 26 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Traditional Bank, Inc.'s most recent annualized quarterly return on equity was 17.23 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $24.3 million on total equity of $145.2 million. The bank had an annualized return on average assets, or ROA, of 1.73 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.