A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, First Choice Bank scored 16 out of a possible 30, beating 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 the total amount of equity. First Choice Bank's most recent annualized quarterly return on equity was 7.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.5 million on total equity of $105.9 million. The bank had an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.