A bank's earnings performance 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, potentially making the bank better able to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
Wauchula State Bank scored 28 out of a possible 30 on Bankrate's test of earnings, beating out 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 total equity. The most recent annualized quarterly return on equity for Wauchula State Bank was 19.03 percent, above the national average of 8.10 percent.
The bank recorded net income of $13.9 million on total equity of $71.2 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.