How profitable a bank is affects its long-term survivability. Earnings may 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. However, banks that are losing money have less ability to do those things.
Citizens Community Bank scored 22 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Citizens Community Bank's most recent annualized quarterly return on equity was 12.90 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.0 million on total equity of $15.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.