How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to 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, take away from a bank's ability to do those things.
Bank of Mauston received above-average marks on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Bank of Mauston was 21.37 percent, above the national average of 8.10 percent.
The bank reported net income of $7.3 million on total equity of $34.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.