A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Coffee County Bank scored 30 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Coffee County Bank's most recent annualized quarterly return on equity was 22.51 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.5 million on total equity of $20.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.60 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.