A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Community Bank received below-average marks on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Community Bank's most recent annualized quarterly return on equity was 4.29 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $351,000 on total equity of $8.1 million. The bank had an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.