A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
1st Community Bank scored 10 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. 1st Community Bank's most recent annualized quarterly return on equity was 4.60 percent, below the national average of 9.28 percent.
The bank reported net income of $142,000 on total equity of $6.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.