A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
County First Bank underperformed the average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. County First Bank's most recent annualized quarterly return on equity was 3.59 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $926,000 on total equity of $26.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.