A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Citizens State Bank underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Citizens State Bank was -13.04 percent, below the national average of 8.10 percent.
The bank reported net income of $-1.7 million on total equity of $12.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -1.10 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.