A bank's profitability affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, Wallis State Bank scored 30 out of a possible 30, above the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Wallis State Bank was 24.70 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $14.5 million on total equity of $62.9 million. The bank experienced an annualized return on average assets, or ROA, of 2.53 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.