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 address problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
St. Landry Bank and Trust Company beat the national average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. St. Landry Bank and Trust Company's most recent annualized quarterly return on equity was 7.06 percent, below the national average of 8.10 percent.
The bank earned net income of $2.2 million on total equity of $30.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.