How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
Community First Bank scored 14 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Community First Bank was 6.75 percent, below the national average of 8.10 percent.
The bank reported net income of $560,000 on total equity of $8.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.