A bank's profitability affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, Community Bank of Pickens County scored 18 out of a possible 30, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Community Bank of Pickens County's most recent annualized quarterly return on equity was 10.11 percent, above the national average of 9.28 percent.
The bank earned net income of $1.6 million on total equity of $33.1 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.