How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's earnings test, Washington Business Bank scored 14 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Washington Business Bank's most recent annualized quarterly return on equity was 6.35 percent, below the national average of 8.10 percent.
The bank reported net income of $551,000 on total equity of $8.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.