How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, First American Bank scored 18 out of a possible 30, beating out the national average of 15.12.
One widely used way to measure 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 9.10 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $32.7 million on total equity of $370.8 million. The bank had an annualized return on average assets, or ROA, of 0.86 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.