A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
First National Bank and Trust Company scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. First National Bank and Trust Company's most recent annualized quarterly return on equity was 1.67 percent, below the national average of 8.10 percent.
The bank reported net income of $567,000 on total equity of $34.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.