A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
First City Bank of Florida did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. First City Bank of Florida's most recent annualized quarterly return on equity was -18.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-1.1 million on total equity of $5.0 million. The bank had an annualized return on average assets, or ROA, of -0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.