How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Oakdale State Bank beat the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Oakdale State Bank's most recent annualized quarterly return on equity was 11.95 percent, above the national average of 8.10 percent.
The bank recorded net income of $267,000 on total equity of $2.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.32 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.