How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
COMMONWEALTH BUSINESS BANK beat the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. COMMONWEALTH BUSINESS BANK's most recent annualized quarterly return on equity was 11.24 percent, above the national average of 8.10 percent.
The bank reported net income of $12.3 million on total equity of $114.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.