A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
The Nekoma State Bank scored 6 out of a possible 30 on Bankrate's earnings test, lower than 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 the total amount of equity. The Nekoma State Bank's most recent annualized quarterly return on equity was 2.94 percent, below the national average of 8.10 percent.
The bank recorded net income of $117,000 on total equity of $3.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.27 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.