How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
First State Bank did below-average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One widely used 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 3.96 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $203,000 on total equity of $5.0 million. The bank had an annualized return on average assets, or ROA, of 0.42 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.