How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
The Farmers State Bank of Bucklin, Kansas received below-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for The Farmers State Bank of Bucklin, Kansas was 5.16 percent, below the national average of 8.10 percent.
The bank reported net income of $251,000 on total equity of $5.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.