How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
First National Bank and Trust Co. of Bottineau scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First National Bank and Trust Co. of Bottineau's most recent annualized quarterly return on equity was 5.01 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $819,000 on total equity of $16.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.