A bank's ability to earn money affects its long-term survivability. Earnings can 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. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Farmers & Mechanics Bank scored 18 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Farmers & Mechanics Bank was 9.93 percent, above the national average of 8.10 percent.
The bank earned net income of $4.3 million on total equity of $45.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.23 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.