A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. However, banks that are losing money are less able to do those things.
First National Bank in Fairfield scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for First National Bank in Fairfield was -2.10 percent, below the national average of 8.10 percent.
The bank earned net income of $-278,000 on total equity of $13.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.