A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, First Community Financial Bank scored 22 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. First Community Financial Bank's most recent annualized quarterly return on equity was 12.86 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $8.3 million on total equity of $129.9 million. The bank had an annualized return on average assets, or ROA, of 1.25 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.