How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Pinnacle Bank - Wyoming received above-average marks on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Pinnacle Bank - Wyoming's most recent annualized quarterly return on equity was 22.45 percent, above the national average of 8.10 percent.
The bank earned net income of $15.9 million on total equity of $74.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.07 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.