A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Commerce Bank of Arizona underperformed the average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Commerce Bank of Arizona's most recent annualized quarterly return on equity was 5.70 percent, below the national average of 8.10 percent.
The bank reported net income of $1.0 million on total equity of $22.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.