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 buffer, or put them to work addressing 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.
Citizens State Bank fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Citizens State Bank's most recent annualized quarterly return on equity was -3.56 percent, below the national average of 8.10 percent.
The bank reported net income of $-155,000 on total equity of $4.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.27 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.