A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
Bank of Oakfield fell behind the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One widely used way to measure 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 Oakfield was 5.79 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $632,000 on total equity of $11.1 million. The bank had an annualized return on average assets, or ROA, of 0.68 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.