How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Charlotte State Bank & Trust scored 28 out of a possible 30, beating out the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Charlotte State Bank & Trust's most recent annualized quarterly return on equity was 20.20 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $3.0 million on total equity of $31.0 million. The bank experienced an annualized return on average assets, or ROA, of 1.69 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.