How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, The City National Bank of Sulphur Springs scored 24 out of a possible 30, beating the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for The City National Bank of Sulphur Springs was 15.39 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $11.3 million on total equity of $75.8 million. The bank experienced an annualized return on average assets, or ROA, of 1.74 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.