A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, The Farmers Bank scored 0 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The Farmers Bank's most recent annualized quarterly return on equity was -0.29 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-41,000 on total equity of $13.8 million. The bank had an annualized return on average assets, or ROA, of -0.04 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.