A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Clear Mountain Bank scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Clear Mountain Bank's most recent annualized quarterly return on equity was 9.34 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.9 million on total equity of $65.0 million. The bank experienced an annualized return on average assets, or ROA, of 1.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.