How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, The First National Bank of Las Animas scored 28 out of a possible 30, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The First National Bank of Las Animas's most recent annualized quarterly return on equity was 20.07 percent, above the national average of 8.10 percent.
The bank reported net income of $8.1 million on total equity of $41.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.38 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.