How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Southern Illinois Bank scored 16 out of a possible 30, exceeding the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Southern Illinois Bank's most recent annualized quarterly return on equity was 7.86 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $938,000 on total equity of $12.3 million. The bank had an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.