How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Conversely, losses reduce a bank's ability to do those things.
1st Cameron State Bank scored 8 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. 1st Cameron State Bank's most recent annualized quarterly return on equity was 3.14 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $77,000 on total equity of $4.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.25 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.