How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, Citizens First Bank, Inc. scored 18 out of a possible 30, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Citizens First Bank, Inc.'s most recent annualized quarterly return on equity was 9.18 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.5 million on total equity of $50.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.97 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.