A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
First National Bank of Jasper fell short of the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. First National Bank of Jasper's most recent annualized quarterly return on equity was 2.50 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $778,000 on total equity of $30.3 million. The bank had an annualized return on average assets, or ROA, of 0.30 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.