A bank's profitability affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Bank of Wedowee scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Bank of Wedowee was 8.77 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $651,000 on total equity of $15.3 million. The bank reported an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.