How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Community Bank of the Bay scored 8 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Community Bank of the Bay was 3.52 percent, below the national average of 8.10 percent.
The bank earned net income of $1.2 million on total equity of $37.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.