A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Fidelity Bank scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Fidelity Bank's most recent annualized quarterly return on equity was 10.36 percent, above the national average of 8.10 percent.
The bank recorded net income of $8.5 million on total equity of $81.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.66 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.