A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
The Citizens National Bank of Quitman fell behind the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for The Citizens National Bank of Quitman was 5.18 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $648,000 on total equity of $12.4 million. The bank reported an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.