A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
First Northern Bank and Trust Company underperformed the average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for First Northern Bank and Trust Company was 4.28 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $4.2 million on total equity of $98.4 million. The bank reported an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.