How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
Western State Bank scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Western State Bank was 11.11 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $11.4 million on total equity of $105.0 million. The bank experienced an annualized return on average assets, or ROA, of 1.13 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.