A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
BankFirst Financial Services scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for BankFirst Financial Services was 9.05 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $3.9 million on total equity of $87.9 million. The bank had an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.