A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Waycross Bank & Trust scored 24 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Waycross Bank & Trust's most recent annualized quarterly return on equity was 14.27 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.2 million on total equity of $15.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.38 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.