A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Lincoln FSB of Nebraska underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Lincoln FSB of Nebraska's most recent annualized quarterly return on equity was 0.73 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $301,000 on total equity of $41.8 million. The bank had an annualized return on average assets, or ROA, of 0.09 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.