How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
First American Bank scored 26 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 (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for First American Bank was 16.33 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $8.6 million on total equity of $104.7 million. The bank experienced an annualized return on average assets, or ROA, of 1.78 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.