How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Cheyenne State Bank received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Cheyenne State Bank's most recent annualized quarterly return on equity was 3.74 percent, below the national average of 8.10 percent.
The bank recorded net income of $231,000 on total equity of $6.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.49 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.