A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
Consumers National Bank scored 14 out of a possible 30 on Bankrate's earnings test, below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Consumers National Bank's most recent annualized quarterly return on equity was 6.90 percent, below the national average of 9.28 percent.
The bank recorded net income of $1.4 million on total equity of $41.8 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.