How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to 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.
Great Plains State Bank underperformed the average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Great Plains State Bank's most recent annualized quarterly return on equity was 6.58 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $963,000 on total equity of $16.4 million. The bank had an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.