How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
First National Bank scored 30 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First National Bank's most recent annualized quarterly return on equity was 23.04 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.7 million on total equity of $21.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.85 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.