How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Frandsen Bank & Trust exceeded the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
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. Frandsen Bank & Trust's most recent annualized quarterly return on equity was 11.99 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $24.6 million on total equity of $208.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.45 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.