How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money have less ability to do those things.
The First National Bank of Edgewood did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for The First National Bank of Edgewood was -6.32 percent, below the national average of 8.10 percent.
The bank recorded net income of $-852,000 on total equity of $59.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -2.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.