How profitable a bank is has an effect on 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 more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
Citizens Union Bank of Shelbyville scored 16 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Citizens Union Bank of Shelbyville was 8.48 percent, below the national average of 9.28 percent.
The bank recorded net income of $4.0 million on total equity of $101.9 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.19 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.