How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, First Community Bank scored 22 out of a possible 30, exceeding the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. First Community Bank's most recent annualized quarterly return on equity was 13.14 percent, above the national average of 8.10 percent.
The bank reported net income of $5.7 million on total equity of $44.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.