A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
The Citizens Bank scored 12 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. The Citizens Bank's most recent annualized quarterly return on equity was 5.54 percent, below the national average of 8.10 percent.
The bank recorded net income of $738,000 on total equity of $13.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.