How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, First State Bank and Trust Company scored 14 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. First State Bank and Trust Company's most recent annualized quarterly return on equity was 6.69 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $5.2 million on total equity of $77.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.11 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.