A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Community Bank and Trust - Alabama scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Community Bank and Trust - Alabama's most recent annualized quarterly return on equity was 1.86 percent, below the national average of 8.10 percent.
The bank earned net income of $56,000 on total equity of $3.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.11 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.