A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Woodford State Bank received above-average marks on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Woodford State Bank's most recent annualized quarterly return on equity was 17.51 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.3 million on total equity of $19.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.57 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.