How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Skagit Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Skagit Bank's most recent annualized quarterly return on equity was 9.64 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $7.4 million on total equity of $78.4 million. The bank reported an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.