How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
St. Martin National Bank scored 20 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. St. Martin National Bank's most recent annualized quarterly return on equity was 11.05 percent, above the national average of 8.10 percent.
The bank reported net income of $329,000 on total equity of $3.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.57 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.