A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
Sabine State Bank and Trust Company exceeded the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Sabine State Bank and Trust Company's most recent annualized quarterly return on equity was 15.66 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $6.6 million on total equity of $86.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.53 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.