How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Chetopa State Bank & Trust Co. beat the national average on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Chetopa State Bank & Trust Co.'s most recent annualized quarterly return on equity was 16.58 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $560,000 on total equity of $3.5 million. The bank reported an annualized return on average assets, or ROA, of 1.68 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.