A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, 1st Advantage Bank scored 12 out of a possible 30, less than the national average of 16.52.
One important measure of 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 1st Advantage Bank was 5.25 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $219,000 on total equity of $8.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.