How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
State Bank of St. Jacob exceeded the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. State Bank of St. Jacob's most recent annualized quarterly return on equity was 10.22 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $953,000 on total equity of $9.5 million. The bank experienced an annualized return on average assets, or ROA, of 1.58 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.