How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, First National Bank scored 10 out of a possible 30, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for First National Bank was 4.48 percent, below the national average of 9.28 percent.
The bank earned net income of $1.6 million on total equity of $73.3 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.69 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.