A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
First Northern Bank of Wyoming beat the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. First Northern Bank of Wyoming's most recent annualized quarterly return on equity was 12.31 percent, above the national average of 8.10 percent.
The bank earned net income of $3.4 million on total equity of $27.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.