How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, First Bank scored 2 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. First Bank's most recent annualized quarterly return on equity was 0.84 percent, below the national average of 8.10 percent.
The bank earned net income of $6.3 million on total equity of $740.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.10 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.