A bank's earnings performance has an effect on 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 more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
CenterPointe Community Bank scored 14 out of a possible 30 on Bankrate's test of earnings, below the national average of 16.52.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for CenterPointe Community Bank was 6.20 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $398,000 on total equity of $13.2 million. The bank had an annualized return on average assets, or ROA, of 0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.