How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
First Bank scored 30 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First Bank's most recent annualized quarterly return on equity was 24.72 percent, above the national average of 8.10 percent.
The bank earned net income of $10.0 million on total equity of $43.6 million for the twelve months ended December 31, 2017. The bank reported 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.