How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Cedar Hill National Bank scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Cedar Hill National Bank's most recent annualized quarterly return on equity was 3.62 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $323,000 on total equity of $9.1 million. The bank had an annualized return on average assets, or ROA, of 2.85 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.