A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Lincoln 1st Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Lincoln 1st Bank was -0.45 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-100,000 on total equity of $20.9 million. The bank reported an annualized return on average assets, or ROA, of -0.03 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.