How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, St. Clair State Bank (Incorporated) scored 24 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. St. Clair State Bank (Incorporated)'s most recent annualized quarterly return on equity was 15.35 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.6 million on total equity of $10.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.81 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.