How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Nebraska Bank of Commerce scored 10 out of a possible 30, below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Nebraska Bank of Commerce's most recent annualized quarterly return on equity was 4.97 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $593,000 on total equity of $12.2 million. The bank reported an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.