How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, Kirkpatrick Bank scored 22 out of a possible 30, beating the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Kirkpatrick Bank was 13.55 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $4.7 million on total equity of $71.0 million. The bank had an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.