How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Woodsboro Bank underperformed the average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Woodsboro Bank was 1.84 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $388,000 on total equity of $21.0 million. The bank had an annualized return on average assets, or ROA, of 0.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.