A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
The First National Bank of Las Animas scored 28 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. The First National Bank of Las Animas's most recent annualized quarterly return on equity was 19.72 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $3.9 million on total equity of $39.7 million. The bank reported an annualized return on average assets, or ROA, of 2.31 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.