How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, City First Bank of D.C., National Association scored 6 out of a possible 30, coming in below the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. City First Bank of D.C., National Association's most recent annualized quarterly return on equity was 2.84 percent, below the national average of 8.10 percent.
The bank recorded net income of $857,000 on total equity of $30.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.30 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.