How profitable a bank is affects its long-term survivability. 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. Losses, on the other hand, take away from a bank's ability to do those things.
Collinsville Savings Society scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Collinsville Savings Society's most recent annualized quarterly return on equity was 3.62 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $538,000 on total equity of $15.1 million. The bank reported an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.