How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, FNB Community Bank scored 12 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. FNB Community Bank's most recent annualized quarterly return on equity was 5.80 percent, below the national average of 9.28 percent.
The bank recorded net income of $1.3 million on total equity of $47.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.