A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, First National Bank of Decatur County scored 4 out of a possible 30, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. First National Bank of Decatur County's most recent annualized quarterly return on equity was 1.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $165,000 on total equity of $14.4 million. The bank reported an annualized return on average assets, or ROA, of 0.10 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.