A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. However, banks that are losing money have less ability to do those things.
Citizens Savings Bank and Trust Company scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Citizens Savings Bank and Trust Company's most recent annualized quarterly return on equity was -34.17 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $-3.0 million on total equity of $6.3 million. The bank had an annualized return on average assets, or ROA, of -2.86 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.