A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
First Central Bank McCook beat the national average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. First Central Bank McCook's most recent annualized quarterly return on equity was 12.52 percent, above the national average of 8.10 percent.
The bank earned net income of $1.5 million on total equity of $10.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.