How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, Oklahoma State Bank scored 30 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. Oklahoma State Bank's most recent annualized quarterly return on equity was 23.90 percent, above the national average of 8.10 percent.
The bank reported net income of $1.2 million on total equity of $5.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.35 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.