A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, First National Bank and Trust Company of Ardmore scored 22 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. First National Bank and Trust Company of Ardmore's most recent annualized quarterly return on equity was 12.47 percent, above the national average of 8.10 percent.
The bank reported net income of $5.8 million on total equity of $47.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.