How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
F&M Bank and Trust Company scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
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. The most recent annualized quarterly return on equity for F&M Bank and Trust Company was -3.55 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-447,000 on total equity of $12.0 million. The bank reported an annualized return on average assets, or ROA, of -0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.