How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
First Community Bank scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. First Community Bank's most recent annualized quarterly return on equity was 8.78 percent, above the national average of 8.10 percent.
The bank reported net income of $507,000 on total equity of $6.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.