How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Citizens State Bank scored 26 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Citizens State Bank was 18.15 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $18.8 million on total equity of $115.4 million. The bank reported an annualized return on average assets, or ROA, of 2.08 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.