A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's earnings test, CFSBANK scored 4 out of a possible 30, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. CFSBANK's most recent annualized quarterly return on equity was 1.63 percent, below the national average of 8.10 percent.
The bank earned net income of $1.2 million on total equity of $73.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.24 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.