A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Community Banking Company of Fitzgerald beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Community Banking Company of Fitzgerald's most recent annualized quarterly return on equity was 9.99 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.8 million on total equity of $18.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.27 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.