A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Far East National Bank scored 30 out of a possible 30, beating the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Far East National Bank's most recent annualized quarterly return on equity was 31.54 percent, above the national average of 9.28 percent.
The bank reported net income of $49.9 million on total equity of $348.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 8.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.