A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
First National Bank in Pratt scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for First National Bank in Pratt was -3.59 percent, below the national average of 8.10 percent.
The bank reported net income of $-422,000 on total equity of $11.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.41 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.