How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Colorado National Bank scored 0 out of a possible 30, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Colorado National Bank was -3.86 percent, below the national average of 8.10 percent.
The bank earned net income of $-212,000 on total equity of $5.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.