A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
First State Bank scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. First State Bank's most recent annualized quarterly return on equity was 9.46 percent, above the national average of 9.28 percent.
The bank reported net income of $213,000 on total equity of $4.5 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.