How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Southern Illinois Bank scored 16 out of a possible 30, coming in below the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Southern Illinois Bank's most recent annualized quarterly return on equity was 7.92 percent, below the national average of 9.28 percent.
The bank reported net income of $464,000 on total equity of $12.1 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.