How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
1st Financial Bank USA outperformed the average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. 1st Financial Bank USA's most recent annualized quarterly return on equity was 7.72 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $11.1 million on total equity of $150.2 million. The bank had an annualized return on average assets, or ROA, of 1.61 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.