A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, First American Bank scored 24 out of a possible 30, better than the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. First American Bank's most recent annualized quarterly return on equity was 16.01 percent, above the national average of 9.28 percent.
The bank recorded net income of $279,000 on total equity of $3.5 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.75 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.