How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses lessen a bank's ability to do those things.
Citizens Federal Savings and Loan Association scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Citizens Federal Savings and Loan Association's most recent annualized quarterly return on equity was 3.51 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $519,000 on total equity of $15.3 million. The bank reported an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.