A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Tristate Capital Bank scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Tristate Capital Bank's most recent annualized quarterly return on equity was 11.10 percent, above the national average of 8.10 percent.
The bank recorded net income of $35.6 million on total equity of $342.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.