How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, 1st Bank & Trust scored 30 out of a possible 30, beating the national average of 16.06.
One key measure of 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 1st Bank & Trust was 25.04 percent, above the national average of 8.10 percent.
The bank earned net income of $3.4 million on total equity of $14.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.