How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
First National Bank scored 22 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important 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's most recent annualized quarterly return on equity was 13.37 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $972,000 on total equity of $7.1 million. The bank had an annualized return on average assets, or ROA, of 1.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.