A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, National Exchange Bank and Trust scored 12 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. National Exchange Bank and Trust's most recent annualized quarterly return on equity was 5.98 percent, below the national average of 8.10 percent.
The bank recorded net income of $20.9 million on total equity of $354.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.