How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. However, banks that are losing money are less able to do those things.
First National Bank scored 30 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for First National Bank was 22.08 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $2.2 million on total equity of $20.5 million. 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.