How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
First National Bank in Ord received above-average marks on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for First National Bank in Ord was 7.23 percent, below the national average of 8.10 percent.
The bank earned net income of $753,000 on total equity of $10.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.