How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Coastal Community Bank scored 16 out of a possible 30 on Bankrate's earnings test, beating 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. Coastal Community Bank's most recent annualized quarterly return on equity was 8.05 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.0 million on total equity of $77.0 million. The bank had an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.