A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, First Bank and Trust Company scored 12 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First Bank and Trust Company's most recent annualized quarterly return on equity was 5.71 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $400,000 on total equity of $6.9 million. The bank reported an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.