How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. However, banks that are losing money have less ability to do those things.
First National Bank in Olney received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. First National Bank in Olney's most recent annualized quarterly return on equity was 10.20 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.8 million on total equity of $38.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.