A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Citizens Trust Bank scored 12 out of a possible 30, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Citizens Trust Bank's most recent annualized quarterly return on equity was 5.86 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $1.3 million on total equity of $46.2 million. The bank had an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.