How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, First National Bank in Okeene 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 important way to measure a bank's earnings. First National Bank in Okeene's most recent annualized quarterly return on equity was 13.16 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.7 million on total equity of $12.6 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.