A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, First National Bank of South Carolina scored 10 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. First National Bank of South Carolina's most recent annualized quarterly return on equity was 4.08 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $948,000 on total equity of $23.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.50 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.