How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, The Citizens National Bank of Hammond scored 8 out of a possible 30, below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Citizens National Bank of Hammond's most recent annualized quarterly return on equity was 3.50 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $68,000 on total equity of $1.9 million. The bank had 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.