How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
First State Bank of Brownsboro scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for First State Bank of Brownsboro was 9.65 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $952,000 on total equity of $9.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.