How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Ciera Bank received above-average marks on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Ciera Bank's most recent annualized quarterly return on equity was 15.44 percent, above the national average of 8.10 percent.
The bank reported net income of $10.7 million on total equity of $71.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.