A bank's profitability affects 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 more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, FNB SOUTH scored 26 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for FNB SOUTH was 17.49 percent, above the national average of 8.10 percent.
The bank earned net income of $9.4 million on total equity of $52.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.61 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.