A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Capital Bank and Trust Company scored 30 out of a possible 30 on Bankrate's test of earnings, beating out 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. The most recent annualized quarterly return on equity for Capital Bank and Trust Company was 35.57 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $35.0 million on total equity of $94.5 million. The bank experienced an annualized return on average assets, or ROA, of 21.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.