How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
Carson Bank scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One important 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 Carson Bank was 2.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $191,000 on total equity of $8.7 million. The bank had an annualized return on average assets, or ROA, of 0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.