A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, The Farmers State Bank of Brush scored 14 out of a possible 30, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The Farmers State Bank of Brush's most recent annualized quarterly return on equity was 6.72 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.2 million on total equity of $18.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.21 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.