How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Nebraska State Bank did above-average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Nebraska State Bank's most recent annualized quarterly return on equity was 25.45 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $1.9 million on total equity of $8.2 million. The bank reported an annualized return on average assets, or ROA, of 3.79 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.