A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, State Bank of Table Rock scored 10 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. State Bank of Table Rock's most recent annualized quarterly return on equity was 4.20 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $275,000 on total equity of $6.8 million. The bank had an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.