How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
SouthStar Bank, S.S.B. scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. SouthStar Bank, S.S.B.'s most recent annualized quarterly return on equity was 7.20 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.6 million on total equity of $79.6 million. The bank had an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.