A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
Citizens Bank of Edinburg outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. Citizens Bank of Edinburg's most recent annualized quarterly return on equity was 8.75 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $186,000 on total equity of $2.1 million. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.