How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Central Bank received above-average marks on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Central Bank was 7.38 percent, below the national average of 8.10 percent.
The bank reported net income of $638,000 on total equity of $9.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.