How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.
Commercial State Bank did below-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Commercial State Bank's most recent annualized quarterly return on equity was 5.28 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $799,000 on total equity of $15.4 million. The bank had an annualized return on average assets, or ROA, of 0.87 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.