How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
The Citizens National Bank of Meridian outperformed the average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for The Citizens National Bank of Meridian was 16.12 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $23.4 million on total equity of $145.6 million. The bank reported an annualized return on average assets, or ROA, of 1.75 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.