A bank's profitability has an effect on 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 able to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
St. Martin Bank and Trust Company scored 30 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. St. Martin Bank and Trust Company's most recent annualized quarterly return on equity was 22.09 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $6.4 million on total equity of $59.9 million. The bank reported an annualized return on average assets, or ROA, of 2.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.