A bank's profitability affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Seaside National Bank & Trust scored 16 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. Seaside National Bank & Trust's most recent annualized quarterly return on equity was 7.80 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $9.9 million on total equity of $131.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.60 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.