How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Community Bank and Trust Company scored 8 out of a possible 30, less than the national average of 15.12.
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. Community Bank and Trust Company's most recent annualized quarterly return on equity was 3.42 percent, below the national average of 8.10 percent.
The bank earned net income of $982,000 on total equity of $28.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.