A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
State Bank of Lincoln scored 24 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. State Bank of Lincoln's most recent annualized quarterly return on equity was 14.60 percent, above the national average of 8.10 percent.
The bank earned net income of $4.9 million on total equity of $34.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.