How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Chippewa Valley Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Chippewa Valley Bank's most recent annualized quarterly return on equity was 14.25 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $4.8 million on total equity of $34.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.