How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Farmers Trust and Savings Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Farmers Trust and Savings Bank's most recent annualized quarterly return on equity was 15.38 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $5.3 million on total equity of $35.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.35 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.