How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
The Farmers State Bank did below-average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for The Farmers State Bank was 0.43 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $13,000 on total equity of $6.1 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 1.14 percent.