A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Washita State Bank scored 0 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Washita State Bank was -0.61 percent, below the national average of 8.10 percent.
The bank reported net income of $-95,000 on total equity of $13.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.