How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
The Citizens State Bank of Taylor County scored 12 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One widely used way to measure 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 State Bank of Taylor County was 5.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $350,000 on total equity of $5.9 million. The bank had an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.