How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
Cross County Savings Bank scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Cross County Savings Bank's most recent annualized quarterly return on equity was 2.87 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.3 million on total equity of $47.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.