How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, South Central Bank, National Association scored 6 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for South Central Bank, National Association was 2.47 percent, below the national average of 8.10 percent.
The bank recorded net income of $591,000 on total equity of $24.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.