How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Forcht Bank, National Association scored 14 out of a possible 30, falling short of the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Forcht Bank, National Association was 6.64 percent, below the national average of 8.10 percent.
The bank recorded net income of $9.0 million on total equity of $136.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.87 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.