A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
First Commerce Bank scored 18 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First Commerce Bank's most recent annualized quarterly return on equity was 11.38 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $976,000 on total equity of $11.3 million. The bank reported an annualized return on average assets, or ROA, of 1.21 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.