A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Central State Bank received above-average marks on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Central State Bank was 17.45 percent, above the national average of 8.10 percent.
The bank earned net income of $3.3 million on total equity of $19.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.51 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.