How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
First State Bank of Wyoming scored 12 out of a possible 30 on Bankrate's earnings test, below 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 the total amount of equity. First State Bank of Wyoming's most recent annualized quarterly return on equity was 5.62 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.6 million on total equity of $29.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.