A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Columbia Bank scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Columbia Bank was -11.41 percent, below the national average of 8.10 percent.
The bank recorded net income of $-2.7 million on total equity of $21.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -1.26 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.