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 prepared to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
Central Bank & Trust Co. scored 14 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Central Bank & Trust Co.'s most recent annualized quarterly return on equity was 6.83 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $17.7 million on total equity of $267.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.