A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Idaho First Bank fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Idaho First Bank's most recent annualized quarterly return on equity was -6.24 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-1.0 million on total equity of $16.9 million. The bank reported an annualized return on average assets, or ROA, of -0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.