How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
The Waggoner National Bank of Vernon received above-average marks on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The Waggoner National Bank of Vernon's most recent annualized quarterly return on equity was 21.16 percent, above the national average of 8.10 percent.
The bank reported net income of $7.7 million on total equity of $37.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.70 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.