How profitable a bank is has an effect on 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 able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Redding Bank of Commerce scored 16 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Redding Bank of Commerce was 7.50 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $9.5 million on total equity of $130.7 million. The bank had an annualized return on average assets, or ROA, of 0.80 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.