How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
The Farmers Bank did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Farmers Bank's most recent annualized quarterly return on equity was 2.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $119,000 on total equity of $6.8 million. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.