How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Farmers State Bank & Trust Co. scored 18 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. Farmers State Bank & Trust Co.'s most recent annualized quarterly return on equity was 8.85 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $680,000 on total equity of $7.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.