A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
First PREMIER Bank scored 20 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
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 PREMIER Bank's most recent annualized quarterly return on equity was 11.66 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $28.1 million on total equity of $249.7 million. The bank had an annualized return on average assets, or ROA, of 1.78 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.