How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Stock Yards Bank & Trust Company scored 22 out of a possible 30, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Stock Yards Bank & Trust Company's most recent annualized quarterly return on equity was 12.52 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $39.2 million on total equity of $321.6 million. The bank experienced an annualized return on average assets, or ROA, of 1.26 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.