A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Foresight Bank scored 24 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Foresight Bank's most recent annualized quarterly return on equity was 15.92 percent, above the national average of 8.10 percent.
The bank reported net income of $3.5 million on total equity of $21.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.59 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.