How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
First National Bank of Picayune scored 26 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. First National Bank of Picayune's most recent annualized quarterly return on equity was 17.92 percent, above the national average of 8.10 percent.
The bank recorded net income of $5.0 million on total equity of $28.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.