How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Cumberland Security Bank, Inc. scored 28 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Cumberland Security Bank, Inc. was 20.15 percent, above the national average of 8.10 percent.
The bank reported net income of $5.0 million on total equity of $25.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.64 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.