How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, The Citizens Bank of Cochran scored 0 out of a possible 30, failing to reach the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The Citizens Bank of Cochran's most recent annualized quarterly return on equity was -2.49 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-244,000 on total equity of $9.5 million. The bank reported an annualized return on average assets, or ROA, of -0.30 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.