A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
First Utah Bank scored 30 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. First Utah Bank's most recent annualized quarterly return on equity was 22.78 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $8.1 million on total equity of $39.3 million. The bank reported an annualized return on average assets, or ROA, of 2.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.