A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Murphy-Wall State Bank and Trust Company scored 12 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Murphy-Wall State Bank and Trust Company's most recent annualized quarterly return on equity was 5.37 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $745,000 on total equity of $14.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.