A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to 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, lessen a bank's ability to do those things.
Citizens Guaranty Bank scored 14 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Citizens Guaranty Bank's most recent annualized quarterly return on equity was 6.61 percent, below the national average of 8.10 percent.
The bank earned net income of $819,000 on total equity of $12.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.52 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.