A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Coastal Commerce Bank scored 30 out of a possible 30 on Bankrate's earnings test, beating out 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. The most recent annualized quarterly return on equity for Coastal Commerce Bank was 21.65 percent, above the national average of 8.10 percent.
The bank recorded net income of $9.5 million on total equity of $43.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.