How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, St. Charles Bank & Trust Company scored 16 out of a possible 30, below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. St. Charles Bank & Trust Company's most recent annualized quarterly return on equity was 7.24 percent, below the national average of 9.28 percent.
The bank recorded net income of $4.6 million on total equity of $125.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.88 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.