How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Farmers Deposit Bank of Middleburg, Inc. scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Farmers Deposit Bank of Middleburg, Inc. was -1.13 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-61,000 on total equity of $5.1 million. The bank experienced an annualized return on average assets, or ROA, of -0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.