A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Almena State Bank outperformed the average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Almena State Bank was 47.15 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $1.7 million on total equity of $8.0 million. The bank had an annualized return on average assets, or ROA, of 3.77 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.