A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
Cornerstone Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Cornerstone Bank was 4.20 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $654,000 on total equity of $15.9 million. The bank had an annualized return on average assets, or ROA, of 0.26 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.