How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
First National Bank in Taylorville outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. First National Bank in Taylorville's most recent annualized quarterly return on equity was 10.19 percent, above the national average of 8.10 percent.
The bank earned net income of $3.2 million on total equity of $31.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.61 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.