A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, First Bank of Owasso scored 30 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for First Bank of Owasso was 21.51 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $8.0 million on total equity of $38.6 million. The bank had an annualized return on average assets, or ROA, of 2.56 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.