How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
The Cincinnatus Savings & Loan Co. fell behind the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The Cincinnatus Savings & Loan Co.'s most recent annualized quarterly return on equity was 1.66 percent, below the national average of 8.10 percent.
The bank reported net income of $344,000 on total equity of $20.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.41 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.