A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Citizens Savings Bank and Trust Company did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Citizens Savings Bank and Trust Company's most recent annualized quarterly return on equity was 1.34 percent, below the national average of 9.28 percent.
The bank reported net income of $63,000 on total equity of $9.5 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.12 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.