How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Fowler State Bank received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Fowler State Bank's most recent annualized quarterly return on equity was 4.51 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $503,000 on total equity of $11.2 million. The bank reported an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.