A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Cornerstone Bank scored 18 out of a possible 30, above the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Cornerstone Bank's most recent annualized quarterly return on equity was 9.89 percent, above the national average of 8.10 percent.
The bank earned net income of $2.2 million on total equity of $22.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.95 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.