A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Lusk State Bank outperformed the average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Lusk State Bank's most recent annualized quarterly return on equity was 16.22 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $1.1 million on total equity of $7.0 million. The bank reported an annualized return on average assets, or ROA, of 1.95 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.