How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
Commercial State Bank, of Wagner received above-average marks on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Commercial State Bank, of Wagner's most recent annualized quarterly return on equity was 21.52 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.7 million on total equity of $17.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.31 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.