How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
BANKWEST OF KANSAS scored 16 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. BANKWEST OF KANSAS's most recent annualized quarterly return on equity was 7.34 percent, below the national average of 8.10 percent.
The bank earned net income of $913,000 on total equity of $12.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.