A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Foothills Community Bank scored 12 out of a possible 30, falling short of the national average of 15.12.
One important 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 Foothills Community Bank was 5.36 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $401,000 on total equity of $7.7 million. The bank reported an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.