A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
The Wilson State Bank beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The Wilson State Bank's most recent annualized quarterly return on equity was 9.98 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $819,000 on total equity of $8.3 million. The bank reported an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.