How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
First American International Bank scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for First American International Bank was 8.91 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $3.6 million on total equity of $82.4 million. The bank reported an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.