How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Bank of Prairie Village scored 22 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Bank of Prairie Village's most recent annualized quarterly return on equity was 13.94 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.5 million on total equity of $11.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.