A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
Community Commerce Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Community Commerce Bank was 1.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $576,000 on total equity of $51.1 million. The bank experienced an annualized return on average assets, or ROA, of 0.29 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.