A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
WestStar Bank exceeded the national average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for WestStar Bank was 18.17 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $39.4 million on total equity of $222.6 million. The bank had an annualized return on average assets, or ROA, of 2.43 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.