A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Community State Bank beat the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Community State Bank's most recent annualized quarterly return on equity was 12.29 percent, above the national average of 8.10 percent.
The bank reported net income of $3.9 million on total equity of $31.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.13 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.