A bank's profitability affects 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 tough times. However, banks that are losing money have less ability to do those things.
First State Bank of DeQueen beat the national average on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. First State Bank of DeQueen's most recent annualized quarterly return on equity was 18.12 percent, above the national average of 8.10 percent.
The bank reported net income of $3.7 million on total equity of $20.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.60 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.