How profitable a bank is affects 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 better able to withstand economic trouble. However, banks that are losing money are less able to do those things.
Farmers Building and Savings Bank received below-average marks on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Farmers Building and Savings Bank's most recent annualized quarterly return on equity was 4.98 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $938,000 on total equity of $19.3 million. The bank reported an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.00 percent.