A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Commonwealth Bank and Trust Company scored 18 out of a possible 30, exceeding the national average of 16.52.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Commonwealth Bank and Trust Company's most recent annualized quarterly return on equity was 9.23 percent, below the national average of 9.28 percent.
The bank recorded net income of $4.0 million on total equity of $88.5 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.82 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.