A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Citizens Savings and Loan Association, FSB scored 0 out of a possible 30, less than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Citizens Savings and Loan Association, FSB's most recent annualized quarterly return on equity was -0.43 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-164,000 on total equity of $37.5 million. The bank experienced an annualized return on average assets, or ROA, of -0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.