A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Citizens and Farmers Bank scored 12 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Citizens and Farmers Bank's most recent annualized quarterly return on equity was 5.16 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $8.5 million on total equity of $163.9 million. The bank experienced 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 1.00 percent.