How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Community State Bank of Orbisonia scored 14 out of a possible 30 on Bankrate's test of earnings, failing to reach 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 total equity. Community State Bank of Orbisonia's most recent annualized quarterly return on equity was 6.55 percent, below the national average of 8.10 percent.
The bank reported net income of $2.3 million on total equity of $35.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.