A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Kanza Bank scored 12 out of a possible 30, lower than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Kanza Bank's most recent annualized quarterly return on equity was 6.02 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $680,000 on total equity of $22.8 million. The bank reported an annualized return on average assets, or ROA, of 0.64 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.