How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, First Naturalstate Bank scored 8 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. First Naturalstate Bank's most recent annualized quarterly return on equity was 3.29 percent, below the national average of 8.10 percent.
The bank reported net income of $198,000 on total equity of $5.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.