A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
First American Bank beat the national average on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for First American Bank was 16.88 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $18.8 million on total equity of $115.5 million. The bank reported an annualized return on average assets, or ROA, of 1.73 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.