How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
St. Charles Bank & Trust Company beat the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. St. Charles Bank & Trust Company's most recent annualized quarterly return on equity was 7.91 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $10.0 million on total equity of $127.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.96 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.