A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
Cambridge State Bank did below-average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Cambridge State Bank's most recent annualized quarterly return on equity was 5.99 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $525,000 on total equity of $8.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.