How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
First Bethany Bank & Trust scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. First Bethany Bank & Trust's most recent annualized quarterly return on equity was 16.00 percent, above the national average of 8.10 percent.
The bank earned net income of $3.0 million on total equity of $19.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.48 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.