How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses lessen a bank's ability to do those things.
Western National Bank scored 14 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Western National Bank's most recent annualized quarterly return on equity was 7.08 percent, below the national average of 8.10 percent.
The bank recorded net income of $225,000 on total equity of $3.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.