A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, First Bank of Thomas scored 18 out of a possible 30, beating out the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. First Bank of Thomas's most recent annualized quarterly return on equity was 9.05 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $612,000 on total equity of $6.9 million. The bank reported an annualized return on average assets, or ROA, of 1.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.