How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
Coulee Bank scored 22 out of a possible 30 on Bankrate's test of earnings, beating the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Coulee Bank's most recent annualized quarterly return on equity was 12.90 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $2.0 million on total equity of $32.5 million. The bank reported an annualized return on average assets, or ROA, of 1.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.