How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
The Farmers State Bank of Waupaca did above-average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The Farmers State Bank of Waupaca's most recent annualized quarterly return on equity was 8.32 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.2 million on total equity of $25.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.17 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.