A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
First National Bank scored 14 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for First National Bank was 6.63 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $15.0 million on total equity of $230.6 million. The bank had an annualized return on average assets, or ROA, of 1.60 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.