How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Farmers Bank & Trust Company exceeded the national average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
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. The most recent annualized quarterly return on equity for Farmers Bank & Trust Company was 13.72 percent, above the national average of 8.10 percent.
The bank earned net income of $19.5 million on total equity of $143.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.45 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.