A bank's earnings performance 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, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, First State Bank of Blakely scored 16 out of a possible 30, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. First State Bank of Blakely's most recent annualized quarterly return on equity was 7.99 percent, below the national average of 8.10 percent.
The bank earned net income of $5.1 million on total equity of $65.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.