A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
First US Bank underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. First US Bank's most recent annualized quarterly return on equity was 0.44 percent, below the national average of 8.10 percent.
The bank earned net income of $339,000 on total equity of $75.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.06 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.