How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, First Commerce Bank scored 20 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for First Commerce Bank was 12.29 percent, above the national average of 8.10 percent.
The bank earned net income of $13.6 million on total equity of $118.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.