A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
FirstOak Bank outperformed the average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for FirstOak Bank was 20.52 percent, above the national average of 8.10 percent.
The bank earned net income of $2.3 million on total equity of $11.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.