How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Franklin State Bank scored 14 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important measure of a bank's earnings. Franklin State Bank's most recent annualized quarterly return on equity was 6.69 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $557,000 on total equity of $8.4 million. The bank reported an annualized return on average assets, or ROA, of 1.21 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.