A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Fairview State Banking Company scored 14 out of a possible 30, coming in below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Fairview State Banking Company's most recent annualized quarterly return on equity was 7.18 percent, below the national average of 8.10 percent.
The bank recorded net income of $254,000 on total equity of $3.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.87 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.