How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
City Bank & Trust Co. scored 8 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for City Bank & Trust Co. was 3.47 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $734,000 on total equity of $21.3 million. The bank had an annualized return on average assets, or ROA, of 0.50 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.