A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
Carmine State Bank scored 12 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Carmine State Bank's most recent annualized quarterly return on equity was 5.68 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $537,000 on total equity of $9.5 million. The bank reported an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.