A bank's earnings performance 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 more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
CBC Bank scored 6 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. CBC Bank's most recent annualized quarterly return on equity was 1.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $58,000 on total equity of $2.9 million. The bank reported an annualized return on average assets, or ROA, of 0.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.