How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, First State Bank of the Florida Keys scored 24 out of a possible 30, beating out the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for First State Bank of the Florida Keys was 15.48 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $12.2 million on total equity of $78.7 million. The bank reported an annualized return on average assets, or ROA, of 1.35 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.