How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Prairie Bank of Kansas scored 10 out of a possible 30, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Prairie Bank of Kansas's most recent annualized quarterly return on equity was 4.75 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $472,000 on total equity of $9.8 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.