How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Senath State Bank scored 20 out of a possible 30, beating out the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Senath State Bank's most recent annualized quarterly return on equity was 12.10 percent, above the national average of 8.10 percent.
The bank earned net income of $1.3 million on total equity of $11.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.81 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.