A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Citizens Community Bank scored 12 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Citizens Community Bank was 5.33 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $584,000 on total equity of $22.2 million. The bank had an annualized return on average assets, or ROA, of 0.55 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.