How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
Wahoo State Bank scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Wahoo State Bank's most recent annualized quarterly return on equity was 11.82 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $753,000 on total equity of $6.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.