How profitable a bank is has an effect on 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 able to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Country Trust Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Country Trust Bank was 14.31 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $3.7 million on total equity of $26.1 million. The bank reported an annualized return on average assets, or ROA, of 12.94 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.