How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, G. W. Jones Exchange Bank scored 8 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. G. W. Jones Exchange Bank's most recent annualized quarterly return on equity was 3.33 percent, below the national average of 8.10 percent.
The bank recorded net income of $213,000 on total equity of $6.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.