How profitable a bank is has an effect on its safety and soundness. 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 financial shocks. Conversely, losses diminish a bank's ability to do those things.
FMB Bank scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. FMB Bank's most recent annualized quarterly return on equity was -0.25 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-9,000 on total equity of $3.6 million. The bank reported an annualized return on average assets, or ROA, of -0.02 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.