A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
CornerstoneBank scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. CornerstoneBank's most recent annualized quarterly return on equity was 6.07 percent, below the national average of 8.10 percent.
The bank earned net income of $963,000 on total equity of $20.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.