A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, First National Bank scored 0 out of a possible 30, lower than the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for First National Bank was -1.86 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-125,000 on total equity of $6.5 million. The bank had an annualized return on average assets, or ROA, of -0.16 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.