A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
KS StateBank did above-average on Bankrate's earnings test, achieving a score of 28 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. KS StateBank's most recent annualized quarterly return on equity was 18.79 percent, above the national average of 9.28 percent.
The bank earned net income of $14.2 million on total equity of $156.1 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.70 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.