A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, First Bank of Lilly scored 2 out of a possible 30, failing to reach 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, basically) by total equity. The most recent annualized quarterly return on equity for First Bank of Lilly was 0.46 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $17,000 on total equity of $3.6 million. The bank reported an annualized return on average assets, or ROA, of 0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.