A bank's profitability affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
First Community Bank scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for First Community Bank was 10.05 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $10.6 million on total equity of $111.8 million. The bank reported 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.