How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, First National Bank of Huntsville scored 16 out of a possible 30, beating out the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First National Bank of Huntsville's most recent annualized quarterly return on equity was 7.26 percent, below the national average of 8.10 percent.
The bank recorded net income of $3.9 million on total equity of $54.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.