A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
Starion Bank beat the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Starion Bank's most recent annualized quarterly return on equity was 14.85 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $19.1 million on total equity of $132.8 million. The bank reported an annualized return on average assets, or ROA, of 1.54 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.