A bank's profitability affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
First National Bank of Kansas scored 14 out of a possible 30 on Bankrate's earnings test, below the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for First National Bank of Kansas was 6.64 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $234,000 on total equity of $7.5 million. The bank had an annualized return on average assets, or ROA, of 0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.