How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
Southwestern National Bank scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Southwestern National Bank was 8.73 percent, below the national average of 9.28 percent.
The bank recorded net income of $2.0 million on total equity of $47.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.11 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.