How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
TransCapital Bank scored 22 out of a possible 30 on Bankrate's earnings test, beating out 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. The most recent annualized quarterly return on equity for TransCapital Bank was 14.10 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $4.5 million on total equity of $33.8 million. The bank experienced an annualized return on average assets, or ROA, of 2.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.