A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
The Bank of Whitewater scored 22 out of a possible 30 on Bankrate's earnings test, beating out the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. The Bank of Whitewater's most recent annualized quarterly return on equity was 12.66 percent, above the national average of 9.28 percent.
The bank earned net income of $120,000 on total equity of $1.9 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.