How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Citizens Bank & Trust Co. of Jackson fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Citizens Bank & Trust Co. of Jackson was -2.67 percent, below the national average of 8.10 percent.
The bank earned net income of $-356,000 on total equity of $12.6 million for the twelve months ended December 31, 2017. The bank had 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.