How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
The City National Bank of San Saba scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The City National Bank of San Saba's most recent annualized quarterly return on equity was 3.66 percent, below the national average of 8.10 percent.
The bank earned net income of $311,000 on total equity of $8.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.