A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, First National Bank Baird scored 4 out of a possible 30, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. First National Bank Baird's most recent annualized quarterly return on equity was 1.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $385,000 on total equity of $35.3 million. The bank had an annualized return on average assets, or ROA, of 0.09 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.