How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Citizens Bank of Ada received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Citizens Bank of Ada's most recent annualized quarterly return on equity was 8.25 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $1.6 million on total equity of $19.2 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.