How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Farmers and Traders Savings Bank scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Farmers and Traders Savings Bank's most recent annualized quarterly return on equity was 2.20 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $47,000 on total equity of $2.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.