How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Community Bank, Coast scored 14 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. Community Bank, Coast's most recent annualized quarterly return on equity was 6.56 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.3 million on total equity of $83.0 million. The bank reported an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.