How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, WOODTRUST BANK scored 30 out of a possible 30, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. WOODTRUST BANK's most recent annualized quarterly return on equity was 28.74 percent, above the national average of 8.10 percent.
The bank reported net income of $11.2 million on total equity of $37.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.81 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.