How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
Citizens State Bank scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Citizens State Bank's most recent annualized quarterly return on equity was 2.00 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $63,000 on total equity of $3.1 million. The bank reported an annualized return on average assets, or ROA, of 0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.