A bank's profitability affects its long-term survivability. Earnings may 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. Banks that are losing money, however, are less able to do those things.
First National Bank in DeRidder scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. First National Bank in DeRidder's most recent annualized quarterly return on equity was 7.64 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.9 million on total equity of $24.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.