How profitable a bank is 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 more resilient in tough times. However, banks that are losing money are less able to do those things.
First New Mexico Bank, Las Cruces outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. First New Mexico Bank, Las Cruces's most recent annualized quarterly return on equity was 10.14 percent, above the national average of 8.10 percent.
The bank earned net income of $1.6 million on total equity of $16.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.32 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.