How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
The Citizens State Bank of Cheney, Kansas exceeded the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The Citizens State Bank of Cheney, Kansas's most recent annualized quarterly return on equity was 14.61 percent, above the national average of 8.10 percent.
The bank reported net income of $988,000 on total equity of $6.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.68 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.