How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money are less able to do those things.
Columbia State Bank scored 12 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Columbia State Bank was 8.22 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $116.3 million on total equity of $1.97 billion. The bank experienced an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.