How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
FNB Oxford Bank outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. FNB Oxford Bank's most recent annualized quarterly return on equity was 9.28 percent, above the national average of 8.10 percent.
The bank reported net income of $3.2 million on total equity of $35.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.07 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.