How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Clayton Bank and Trust scored 30 out of a possible 30, exceeding the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Clayton Bank and Trust was 21.60 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $17.2 million on total equity of $164.1 million. The bank experienced an annualized return on average assets, or ROA, of 3.88 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.