A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Citywide Banks scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Citywide Banks's most recent annualized quarterly return on equity was 3.64 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $7.7 million on total equity of $357.1 million. The bank experienced an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.