How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Citizens State Bank exceeded the national average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Citizens State Bank was 25.35 percent, above the national average of 8.10 percent.
The bank earned net income of $3.0 million on total equity of $12.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.