How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Southeastern Bank scored 14 out of a possible 30, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Southeastern Bank's most recent annualized quarterly return on equity was 6.21 percent, below the national average of 8.10 percent.
The bank earned net income of $2.9 million on total equity of $47.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.