How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
Forest Park National Bank and Trust Company beat the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Forest Park National Bank and Trust Company was 11.95 percent, above the national average of 8.10 percent.
The bank reported net income of $2.3 million on total equity of $19.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.98 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.