A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money are less able to do those things.
First National Banker's Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. First National Banker's Bank's most recent annualized quarterly return on equity was -2.16 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-3.2 million on total equity of $144.4 million. The bank experienced an annualized return on average assets, or ROA, of -0.36 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.