How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Bank of Commerce scored 22 out of a possible 30, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Bank of Commerce's most recent annualized quarterly return on equity was 12.46 percent, above the national average of 8.10 percent.
The bank earned net income of $4.4 million on total equity of $35.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.