A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Community Financial Services Bank scored 20 out of a possible 30, above the national average of 16.52.
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. Community Financial Services Bank's most recent annualized quarterly return on equity was 10.68 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $4.9 million on total equity of $93.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.98 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.