A bank's profitability affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Commerce National Bank & Trust scored 22 out of a possible 30 on Bankrate's earnings test, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Commerce National Bank & Trust was 14.38 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $891,000 on total equity of $12.8 million. The bank had an annualized return on average assets, or ROA, of 1.68 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.