A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Bank of Walker County fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Bank of Walker County's most recent annualized quarterly return on equity was 4.06 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $323,000 on total equity of $7.0 million. The bank reported an annualized return on average assets, or ROA, of 0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.