A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
Community Savings Bank scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Community Savings Bank's most recent annualized quarterly return on equity was 1.43 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $885,000 on total equity of $62.1 million. The bank reported an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.