How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
WebBank scored 30 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, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. WebBank's most recent annualized quarterly return on equity was 28.57 percent, above the national average of 8.10 percent.
The bank earned net income of $27.6 million on total equity of $106.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 5.44 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.