A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Cumberland Valley National Bank & Trust Company fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Cumberland Valley National Bank & Trust Company was 3.79 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.8 million on total equity of $47.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.