How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
Fayetteville Bank scored 28 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. Fayetteville Bank's most recent annualized quarterly return on equity was 22.69 percent, above the national average of 8.10 percent.
The bank reported net income of $10.9 million on total equity of $55.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.