A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
Citizens Bank of Chatsworth scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Citizens Bank of Chatsworth's most recent annualized quarterly return on equity was -18.65 percent, below the national average of 8.10 percent.
The bank reported net income of $-324,000 on total equity of $1.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -1.00 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.