A bank's earnings performance 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, potentially making the bank better prepared to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, First National Bank of Pennsylvania scored 10 out of a possible 30, falling short of the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. First National Bank of Pennsylvania's most recent annualized quarterly return on equity was 5.01 percent, below the national average of 8.10 percent.
The bank recorded net income of $203.9 million on total equity of $4.55 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.