A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Bank of Commerce & Trust Co. fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Bank of Commerce & Trust Co.'s most recent annualized quarterly return on equity was 4.31 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $1.6 million on total equity of $35.0 million. The bank had an annualized return on average assets, or ROA, of 0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.