A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Waukesha State Bank scored 22 out of a possible 30, better than 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. The most recent annualized quarterly return on equity for Waukesha State Bank was 12.90 percent, above the national average of 8.10 percent.
The bank earned net income of $15.9 million on total equity of $122.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.63 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.