How profitable a bank is 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. Obviously, banks that are losing money are less able to do those things.
Alva State Bank & Trust Company scored 28 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Alva State Bank & Trust Company was 17.81 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.2 million on total equity of $39.4 million. The bank reported an annualized return on average assets, or ROA, of 2.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.