A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
First American Bank did above-average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First American Bank's most recent annualized quarterly return on equity was 13.32 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $469,000 on total equity of $3.6 million. The bank experienced an annualized return on average assets, or ROA, of 1.50 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.