How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
The Fayette County National Bank of Fayetteville did below-average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The Fayette County National Bank of Fayetteville's most recent annualized quarterly return on equity was 6.03 percent, below the national average of 8.10 percent.
The bank reported net income of $660,000 on total equity of $10.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.72 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.