A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
First American Bank outperformed the average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for First American Bank was 16.21 percent, above the national average of 9.28 percent.
The bank reported net income of $8.8 million on total equity of $110.2 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.62 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.