How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
City National Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for City National Bank was 15.11 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $764,000 on total equity of $5.3 million. The bank had an annualized return on average assets, or ROA, of 1.68 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.