A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, Foothills Bank & Trust scored 16 out of a possible 30, falling short of the national average of 16.52.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Foothills Bank & Trust was 7.86 percent, below the national average of 9.28 percent.
The bank recorded net income of $795,000 on total equity of $20.4 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.