A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
Walters Bank and Trust Company scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Walters Bank and Trust Company's most recent annualized quarterly return on equity was 2.98 percent, below the national average of 8.10 percent.
The bank earned net income of $366,000 on total equity of $12.2 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.64 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.