A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, Farmers Bank & Trust scored 20 out of a possible 30, better than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Farmers Bank & Trust was 11.62 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $15.8 million on total equity of $142.0 million. The bank reported an annualized return on average assets, or ROA, of 1.97 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.