How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Cornerstone National Bank scored 10 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Cornerstone National Bank's most recent annualized quarterly return on equity was 4.14 percent, below the national average of 9.28 percent.
The bank earned net income of $394,000 on total equity of $18.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.