How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
First National Bank of Clinton scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 15.12.
One widely used measure of 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 of Clinton was -1.45 percent, below the national average of 8.10 percent.
The bank recorded net income of $-125,000 on total equity of $6.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.18 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.