How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
The State Bank scored 22 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The State Bank's most recent annualized quarterly return on equity was 14.61 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $9.6 million on total equity of $70.1 million. The bank reported an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.